ADP Employment Surges In May Led By Services Rebound

After disappointing jobs data in April, May’s ADP data showed an increase of 978,000 jobs in May (above the highest economist’s estimate)…

Source: Bloomberg

This is the biggest monthly increase since June 2020.

“Private payrolls showed a marked improvement from recent months and the strongest gain since the early days of the recovery,” said Nela Richardson, chief economist, ADP.

The gains were seen across all company size cohorts and only the "Information" industry saw job losses…

as Services dominated the Goods-Producing sector’s gains…

“While goods producers grew at a steady pace, it is service providers that accounted for the lion’s share of the gains, far outpacing the monthly average in the last six months. Companies of all sizes experienced an uptick in job growth, reflecting the improving nature of the pandemic and economy.”

Source: Bloomberg

The ADP data precede Friday’s monthly jobs report, which is currently forecast to show the economy added 600,000 private-sector jobs in May.