US ADP private-sector employment increased by 122k in May, beating expectations of 110k and pointing to continued resilience in the labor market ahead of Friday’s closely watched non-farm payrolls report. Hiring was concentrated in services, which added 114k jobs, while goods-producing industries contributed 8k. Small businesses led job creation with 67k new positions, followed by large firms with 40k and medium-sized employers with 17k.
The report also suggested wage pressures remain elevated but stable. Annual pay growth for workers who stayed in their jobs held steady at 4.4%, while pay growth for job changers eased slightly from 6.6% to 6.5%. The figures indicate that wage inflation is not accelerating, but it remains well above levels typically associated with the Federal Reserve’s 2% inflation objective.
ADP Chief Economist Nela Richardson said, “Hiring was more broad-based in May than we’ve seen in the last few years,” adding that “the labor market continues to show sustained momentum going into the summer hiring season.” For markets, the report reinforces the view that the US economy remains on solid footing despite higher interest rates and elevated energy prices. While ADP is not always a reliable predictor of the official payrolls report, the stronger-than-expected reading may modestly reduce concerns about an abrupt slowdown in employment growth and keep attention focused on inflation rather than labor-market weakness.
| Indicator |
May |
Expectation |
| ADP Private Employment Change |
+122k |
+110k |
| Sector |
Jobs Added |
| Goods-Producing |
+8k |
| Service-Providing |
+114k |
| Total |
+122k |
| Establishment Size |
Jobs Added |
| Small Businesses |
+67k |
| Medium Businesses |
+17k |
| Large Businesses |
+40k |
| Category |
April |
May |
| Job-Stayers |
4.4% |
4.4% |
| Job-Changers |
6.6% |
6.5% |
Full US ADP employment release here.
