US private-sector hiring expanded more than expected in May, signaling continued resilience in the labor market.
US payroll processor Automatic Data Processing (ADP) said Tuesday that private employment in the United States rose by 122,000 in May from the previous month.
The increase outpaced April's gain of 109,000 and topped the 110,000 forecast by economists polled by Dow Jones.
Education and health services led the gains, adding 57,000 jobs. Trade, transportation and utilities contributed another 36,000 positions. By contrast, the information services sector shed 9,000 jobs. ADP suggested that productivity gains from the spread of artificial intelligence (AI) technology may have contributed to the decline in some office-based positions. Natural resources and mining also lost 3,000 jobs.
Wage growth held steady. Annual pay gains for workers who stayed in their jobs came in at 4.4 percent, unchanged from the previous month, while pay growth for job changers slowed slightly to 6.5 percent.
"Hiring was on the firmer side in May, even as policy effects have started to surface," ADP Chief Economist Nela Richardson said, noting that May's hiring was broader across industries compared with what has been seen in recent years and that the labor market is maintaining momentum heading into the summer hiring season.
The ADP private employment report is based on data collected by the private firm and may differ from the official nonfarm payrolls figure compiled by the US government. The US Labor Department is scheduled to release its nonfarm payrolls report on Thursday.
