Private Payrolls Rise 122K in May as Hiring Broadens Across Industries — Evening Brief – 06.03.26

U.S. private-sector employers added 122,000 jobs in May, signaling continued labor market resilience as hiring broadened across industries and regions ahead of the summer employment season, according to data released Wednesday by ADP.

The May increase was largely in line with economists’ expectations for 120,000 new jobs and represented an improvement from April’s revised gain of 105,000 positions.

“Hiring was more broad-based in May than we’ve seen in the last few years,” said Nela Richardson, chief economist at ADP. “The labor market continues to show sustained momentum going into the summer hiring season.”

Education and health services once again led job creation, adding 57,000 positions during the month. Trade, transportation and utilities followed with 36,000 new jobs, while professional and business services contributed 11,000 jobs.

The goods-producing sector added 8,000 positions overall. Construction accounted for the bulk of those gains with 8,000 new jobs, while manufacturing added 3,000 workers. Employment in natural resources and mining declined by 3,000 positions.

Regional hiring was strongest in the West, where private payrolls increased by 45,000. The Northeast added 35,000 jobs, followed by the South with 23,000 and the Midwest with 21,000.

Smaller employers drove much of the hiring activity. Businesses with fewer than 50 employees added 67,000 jobs in May, while large employers with 500 or more workers increased payrolls by 40,000. Mid-sized firms with 50 to 499 employees added 17,000 jobs.

Wage growth remained stable for workers who stayed in their current roles, with annual pay increasing 4.4%, unchanged from April. Meanwhile, workers who changed jobs saw annual pay gains of 6.5%, down slightly from 6.6% in the prior month, suggesting labor market competition remains healthy but continues to moderate.