Washington, United States, June 3, 2026 (AFP)
Employment in the US private sector grew more than expected in May, payroll firm ADP said Wednesday, with hiring seen across a range of industries.
Job growth came in at 122,000 last month, up from a revised 105,000 figure in April, ADP said.
This was above the 110,000 jobs forecast by economists surveyed by Dow Jones Newswires and The Wall Street Journal.
The numbers are closely watched ahead of the government's employment report due Friday -- with officials monitoring for weakness in the labor market -- although the numbers may diverge.
With the full effects of war in the Middle East yet to be seen, analysts believe that recent labor market data will allow the US central bank to continue holding interest rates steady as they assess the best path forward.
"Hiring was more broad-based in May than we've seen in the last few years," said ADP chief economist Nela Richardson.
The report showed that employers of all sizes were hiring, with gains seen in industries like education and health services, alongside trade, transportation and utilities.
"The labor market continues to show sustained momentum going into the summer hiring season," Richardson said.
But economist Matthew Martin of Oxford Economics warned that the report is "slightly at odds with" other recent data indicating stable though uninspiring hiring rates.
"The question is whether this momentum can be sustained in the face of the US-Israel war with Iran," Martin said.
US-Israeli strikes targeting Iran since February 28 had plunged the Middle East into war, sparking Tehran's retaliation in virtually closing off the Strait of Hormuz.
The waterway is key to energy transit, causing oil prices to soar while fueling higher US gasoline costs and pushing inflation up.
"Heightened uncertainty from the war will show up in the data with a lag, as delayed or cancelled headcount expansions by firms won't appear immediately," Martin added in a note.
For now, however, he expects the Federal Reserve will focus on "ensuring inflation doesn't creep into goods and services prices outside energy," holding rates steady until later this year.
Workers who remained in their jobs saw pay growth of 4.4 percent in May, ADP said.
For those who changed jobs, salary growth slowed slightly to 6.5 percent -- from 6.6 percent in April.

Sumber : AFP