Businesses in the U.S. added more jobs than expected in May, a signal that the economy’s demand for labor is accelerating.
Private-sector payrolls rose by 122,00, ADP Research said Wednesday, the biggest increase since January of 2025. The prior month’s estimate was revised down by 4,000 to 105,000.
The median estimate in an Econoday survey of economists called for a 120,000 increase.
The data on the growth of private payrolls follows Tuesday’s JOLTS report showing far more job vacancies than expected and a low level of layoffs. Both point to a growing appetite for workers even as the Iran war stretches on and gas prices remain high.
The construction industry added 8,000 workers to its payrolls, and the manufacturing sector added 3,000. Trade, transportation, and utilities added 36,000.
The biggest gain came in education and health services, which added 57,000 workers. Professional and business services, finance, and leisure and hospitality all added workers.
“Hiring was more broad-based in May than we’ve seen in the last few years. The labor market continues to show sustained momentum going into the summer hiring season,” said Nela Richardson, chief economist at ADP.
All sizes of businesses added workers. The information sector was the only one to shed workers, contracting payrolls by 9,000.
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