Companies in the private sector added 122,000 jobs in May, payroll processing firm ADP said in its latest report on Wednesday.
The figure is above economists’ estimates of a gain of 117,000 jobs. The prior month’s payrolls number was revised lower to a gain of 105,000 from an initially reported gain of 109,000.
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Which industries are hiring the most workers, according to the ADP report?
Education and health services added 57,000 positions, leading job creation in May. Trade, transportation and utilities added 36,000 and professional and business services added 11,000. Leisure and hospitality and construction each added 8,000 positions in the month.
Financial activities added 7,000, other services added 4,000 and manufacturing added 3,000.
On the negative side, information lost 9,000 jobs while natural resources and mining lost 3,000.
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Large businesses – those with 500 or more employees – gained 40,000 jobs in May. Businesses with 50 to 499 employees gained 17,000 workers. Establishments with fewer than 50 employees gained 67,000 jobs.
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What experts are saying about the ADP report data
“Hiring was more broad-based in May than we’ve seen in the last few years,” said ADP chief economist Nela Richardson. “The labor market continues to show sustained momentum going into the summer hiring season.”
“The ADP jobs report for May surprised to the upside with 122,000 private sector job gains, the most since January 2025,” said Heather Long, chief economist at Navy Federal Credit Union. “While healthcare made up nearly half of the jobs, there were increases in almost every industry. It’s a much better picture for job seekers this summer than last year. The most encouraging news of all is that over half of the job gains were at smaller firms. Small businesses were the first to cut back last year, especially after sweeping tariffs went into effect. The fact they are hiring now is a vote of confidence in the economy.”
The ADP data is released before the Labor Department’s nonfarm payrolls report, which is due on Friday morning and can differ notably. The government data is expected to show an increase of 85,000 positions, below the 115,000 reported in April.
