ADP Sees Strongest May Job Growth Since Jan 2025 With 122,000 Positions Added
ADP•ADP’s payroll data showed U.S. private employers added 122,000 jobs in May, the strongest monthly gain since January 2025, exceeding the prior month’s revised 105,000 increase and economist projections. Gains were broad-based across nine of ten industries with education and health services leading at 57,000 positions added, signaling sustained demand for ADP’s payroll services.
1. May Payroll Growth Surpasses Expectations
ADP’s report shows private-sector employers added 122,000 jobs in May, marking the strongest monthly increase since January 2025. April’s total was revised down to 105,000, enhancing the relative strength of May’s gain over prior expectations.
2. Broad-Based Industry Gains
Nine of the ten industries tracked posted net positive results, led by education and health services with 57,000 jobs added. Trade, transportation and utilities contributed 36,000, while construction and leisure and hospitality each added 8,000 positions.
3. Employer Size Distribution
Firms with fewer than 50 employees drove growth with 67,000 hires, compared to 17,000 at mid-size employers and 40,000 at large firms with 500 or more workers. This distribution highlights robust small-business expansion.
4. Wage Trends and Business Implications
Annual wages for job-stayers grew 4.4%, while job-changers saw a 6.5% increase, slightly below April’s 6.6%. Continued hiring momentum may bolster demand for ADP’s payroll services ahead of the upcoming government employment release and June Federal Reserve meeting.
