US Private Sector Job Growth Tops Forecasts Again

Private businesses in the US added a net 122,000 jobs in May 2026, a new high since January 2025, compared to a downwardly revised 105,000 in April and above forecasts of 117,000. "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", according to Dr. Nela Richardson Chief Economist, ADP. Job gains occured in education and health services (57K), trade, transportation, and utilities (36K), professional and business services (11K), leisure and hospitality (8K), construction (8K), financial activities (7K) and manufacturing (3K). In contrast, the natural resources and mining sector shed 3K jobs and information lost 9K. Meanwhile, companies with fewer than 50 employees added 67K new hires, those with 500 or more added 40K and medium-sized firms contributed 17K. Annual pay growth for those staying in their jobs stayed at 4.4% while for job-switchers it edge higher to 6.6%.

Private businesses in the US added a net 109,000 jobs in April 2026, the largest increase since January 2025 and above market forecasts of 99,000. The stronger-than-expected data still reflects the Federal Reserve’s described "low-hire, low-fire" labor market, where employers avoid layoffs but have significantly reduced hiring amid slower labor force growth due to lower immigration. The service-providing sector led gains with 94,000 jobs, driven by education and health services (+61,000), trade, transportation and utilities (+25,000), and financial activities (+9,000). The goods-producing sector contributed 15,000 jobs, mainly from construction (+10,000). Small businesses were the top contributors, adding 65,000 jobs, followed by large companies (+42,000), while medium-sized firms added 2,000.

Private businesses in the US added a net 62,000 jobs in March of 2026, extending the upwardly revised 66,000 in February and above market expectations of a 40,000 increase. The result held signs of resilience in the labor market per the latest leading indicators, despite economic uncertainty and the pullback in the labor force growth amid lower immigration. Education and health services jobs rose by 58,000 to remain the main source of job growth. Other gains were seen in construction (30,000), natural resources and mining (11,000), information (16,000), leisure and hospitality (7,000), and financial activities (4,000). In turn, a net 58,000 jobs were lost in trade, transportation, and utilities, while 11,000 positions were lost in manufacturing. "Overall hiring is steady, but job growth continues to favor certain industries, including health care. In March, this solid performance was accompanied by a boost in pay gains for job-changers." - ADP Chief Economist Dr. Nela Richardson.