Strong US Job Gains
U.S. Private Payrolls Add 122,000 Jobs in May, Exceeding Expectations with Broad-Based Growth
Anonymous
The ADP National Employment Report showed U.S. private employers added 122,000 jobs in May, beating expectations and following April’s 105,000 gain (with April revised down from 109,000). Hiring was described as more broad-based than in recent years, with gains across most of ADP’s tracked sectors and across company sizes and geographies, while information services was the notable drag. Education and health services led with 57,000 hires, while trade, transportation and utilities added 36,000 and professional and business services contributed 11,000; information services fell by 9,000 and natural resources and mining declined by 3,000. Pay increased by 4.4% for workers staying in their jobs, while pay growth for job switchers edged down to 6.5%. Economists pointed to a stable labor market heading into the summer hiring season, and stronger-than-expected employment supported the U.S. dollar and reinforced expectations that the Federal Reserve remains focused on inflation. The report lands ahead of Friday’s official nonfarm payrolls and unemployment data, with market forecasts ranging around an 80,000–85,000 employment increase for May (which could differ from ADP’s measure).
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ADP chief economist Nela Richardson said, "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."
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The report comes alongside mixed signals from the government’s job openings and labor turnover data: job openings jumped in April to the highest rate since May 2024 (with vacancies largely concentrated in professional and business services), but hiring slid and the quits rate decreased slightly—suggesting neither employees nor employers were rushing to change jobs or workforce plans, according to Oxford Economics’ Matthew Martin.
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Currency-market reaction was detailed by FXStreet: the U.S. Dollar Index was up about 0.16% to 99.38 after the data, and FXStreet cited "safe-haven demand due to the uncertainty surrounding the US-Iran conflict" alongside hawkish Fed expectations as supportive of the dollar into Friday’s employment report.
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CNBC added that May was the strongest month for private hiring since January 2025, and noted market moves after the ADP release: "Stock market futures were mixed" while "Treasury yields were higher." CNBC also said April’s total was revised down by an additional 4,000.
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