ADP said private employers posted their strongest monthly payroll gain since January 2025, with hiring spread across most major industries.
By yourNEWS Media Newsroom
Private employers added more workers than expected in May, offering a fresh sign that demand for labor remained firm despite pressure from high gas prices and the ongoing war with Iran.
ADP Research said Wednesday that private-sector payrolls increased by 122,000 jobs in May, the largest monthly gain since January 2025. Economists surveyed by Econoday had expected an increase of 120,000.
The April figure was revised lower by 4,000 jobs, bringing the prior month’s gain to 105,000.
The ADP report followed Tuesday’s JOLTS data, which showed job openings running well above expectations while layoffs remained low. Together, the two reports pointed to an economy in which employers continued looking for workers heading into the summer hiring season.
Employment gains were spread across much of the private economy. Education and health services led the increase, adding 57,000 jobs. Trade, transportation and utilities added 36,000 positions. Construction payrolls rose by 8,000, while manufacturers added 3,000 workers.
Professional and business services, finance, and leisure and hospitality also recorded payroll gains in May.
“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.
The report showed that businesses of all sizes added workers during the month, indicating that hiring was not concentrated only among large employers or a narrow set of industries.
The information sector was the lone major category to cut jobs, shedding 9,000 positions.
The May increase adds to evidence that the labor market has remained resilient even as businesses and households face uncertainty tied to overseas conflict and elevated fuel costs. The broader pattern in the data suggests employers are still reluctant to reduce staff and continue to compete for workers in several key industries.