Key Takeaways

• May ADP beat: Private sector employment grew by 122,000 in May, topping the 117,000 expected.
• April revised up: The prior month’s reading came in at 105,000.
• Broad-based hiring: ADP’s chief economist noted the hiring was “more broad-based in May than we’ve seen in the last few years.”
• Summer momentum building: Dr. Nela Richardson said the labor market is showing “sustained momentum going into the summer hiring season.”
• Nonfarm payrolls ahead: Friday’s official jobs report will be the bigger market test for Fed rate expectations.

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Private sector employment in the United States grew by 122,000 in May, according to data released by Automatic Data Processing (ADP) on Wednesday. The print followed the 105,000 increase recorded in April and came in better than the market expectation of 117,000.

“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 Dr. Nela Richardson, Chief Economist at ADP.

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