By Matthew Kazin / Fox Business
The American private sector added 122,000 jobs in May, surpassing economists’ expectations of a gain of 117,000, according to ADP’s latest National Employment Report released Wednesday.
The prior month’s figure was revised slightly lower to 105,000 from the initially reported 109,000, but the May number signals continued momentum heading into the summer hiring season.
Small businesses drove the bulk of the gains. Companies with fewer than 50 employees added 67,000 jobs — more than half the total private sector growth for the month. Mid-sized businesses with 50 to 499 employees gained 17,000 workers, while large businesses with 500 or more employees added 40,000.
Education and health services led all sectors with 57,000 new positions. Trade, transportation, and utilities added 36,000. Professional and business services added 11,000, while leisure and hospitality and construction each added 8,000. Financial activities added 7,000 and manufacturing added 3,000. The information sector was the lone notable drag, losing 9,000 positions in the month.
“Hiring was more broad-based in May than we have 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 official Labor Department nonfarm payrolls report, which can differ notably from ADP’s private sector figures, is due Friday morning. Economists expect it to show a gain of 85,000 positions, below the 115,000 reported in April.
Source: Fox Business, June 3, 2026. Reported by Matthew Kazin.