Private Sector Job Growth Surpasses Expectations with 122,000 New Positions in May
Private sector adds 122,000 jobs in May, above expectations, ADP says

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In May, the private sector added 122,000 jobs, exceeding economists' expectations of 117,000. The ADP report indicates strong job creation across various sectors, particularly in education and health services, while some sectors faced job losses.
- 01Education and health services led job creation with 57,000 new positions.
- 02Large businesses added 40,000 jobs, while small businesses contributed 67,000.
- 03The previous month's job gains were revised down from 109,000 to 105,000.
- 04ADP chief economist Nela Richardson noted a broader-based hiring trend in May.
- 05The upcoming Labor Department report is expected to show an increase of 85,000 jobs.
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According to the latest ADP national employment report, the private sector added 122,000 jobs in May, surpassing economists' forecasts of 117,000. The report shows a diverse job creation landscape, with education and health services contributing the most at 57,000 positions. Other sectors such as trade, transportation, and utilities added 36,000 jobs, while professional and business services saw an increase of 11,000. Smaller sectors, including leisure and hospitality, and construction, each gained 8,000 jobs. However, the information sector experienced a decline, losing 9,000 positions. Notably, large businesses (500 or more employees) added 40,000 jobs, while establishments with fewer than 50 employees contributed 67,000. ADP chief economist Nela Richardson remarked on the broad-based nature of hiring in May, indicating sustained momentum in the labor market as the summer hiring season approaches. The ADP report precedes the Labor Department's nonfarm payrolls report, which is anticipated to show a more modest increase of 85,000 jobs, down from 115,000 in April.
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The increase in private sector jobs indicates a strengthening labor market, which may influence consumer spending and economic growth.
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