Key facts
- US private employers added 122,000 jobs in May.
- April's private payroll figure was revised down to 105,000.
- Job gains were broad-based across eight of ten industry sectors.
US private employers added 122,000 jobs in May, exceeding forecasts. April's figure was revised down to 105,000. Job gains were broad-based, with education and health services leading. Wages rose 4.4% in May.
Private employers in the U.S. added 122,000 jobs in May, exceeding forecasts from Reuters (117,000) and Bloomberg (120,000). April's figure was revised down to 105,000 from 109,000. Job gains were broad-based across eight of ten industry sectors, with education and health services leading. ADP's chief economist noted sustained momentum, but Oxford Economics offered a more cautious view, pointing to a decrease in the quits rate and layoff rate. Wages rose 4.4% in May. Separately, April's Job Openings and Labor Turnover Survey showed job openings hit their highest rate since May 2024, but overall hiring declined. Financial markets anticipate the Federal Reserve will hold its benchmark interest rate between 3.50%–3.75% due to ongoing inflation and geopolitical concerns. The official Bureau of Labor Statistics jobs report for May is due Friday, with economists forecasting 85,000 jobs added and an unemployment rate of 4.3%.
The stronger-than-expected private payroll growth provides mixed signals for the Federal Reserve, potentially delaying interest rate cuts as it balances inflation concerns with labor market conditions.