ADP reports 122,000 jobs added in May, strongest Jan 2025

The U.S. private sector added 122,000 jobs in May, marking the strongest month of hiring since January 2025 and exceeding economists' expectations, according to payroll processor ADP. The report, released Wednesday, indicates a broadening of labor market momentum heading into the summer.

Hiring gains were widespread across eight of ten industry sectors tracked by ADP. Education and health services led the expansion with 57,000 new positions. Significant contributions also came from trade, transportation, and utilities, which added 36,000 jobs, and professional and business services, which added 11,000. Construction and leisure and hospitality each added 8,000 jobs. The information services sector, which includes software publishing and telecommunications, lost 9,000 positions, while natural resources and mining declined by 3,000.

ADP Chief Economist Nela Richardson said hiring in May was more broad-based than in recent years, adding that the labor market continues to show sustained momentum going into the summer hiring season. Small businesses with fewer than 50 employees accounted for a majority of the hiring, adding 67,000 jobs. Large companies with 500 or more employees added...