Stronger-than-expected job growth in May hints at labor market momentum ahead of the summer, especially at small businesses, despite previous reports of historically low consumer sentiment.
Automatic Data Processing (ADP), an American payroll processing multinational, reported that 122,000 private sector jobs were added in May, surpassing expectations and marking the largest monthly gain since January 2025. This marks the largest monthly gain since the beginning of last year. According to ADP Chief Economist Dr. Nela Richardson, hiring in May was more broad-based than in recent years, seeing gains across multiple sectors. Small businesses with fewer than 50 employees led the hiring surge, although medium and large businesses also experienced solid increases. Trade and Transportation, Education and Health Services, and Professional and Business Services sectors added the most jobs, while the Information Services sector saw the largest losses. Natural Resources and Mining jobs also experienced 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,” Richardson stated.
The stronger-than-expected job growth underscores the resilience of the U.S. labor market, even as reports from the University of Michigan’s Consumer Sentiment Index suggest record-low consumer sentiment. In April, consumer sentiment crashed to a record low of 49.8—the lowest level since data collection began in 1978. The U.S. job market added 178,000 jobs in March, rebounding from February’s loss of 133,000 jobs.
Additionally, Bureau of Labor Statistics data shows that approximately 90 percent of net new jobs added in the United States since the pandemic have been filled by foreign-born workers.
