Private sector employment in the United States increased by 122,000 jobs in May 2026, while annual pay growth remained steady at 4.4%, according to the latest ADP National Employment Report produced by ADP Research in collaboration with the Stanford Digital Economy Lab. The report reflects continued hiring momentum across industries and company sizes heading into the summer hiring season.
The May ADP National Employment Report highlighted widespread hiring gains across the U.S. labor market, with employers of all sizes contributing to job growth. According to ADP Research, the report is based on anonymized payroll data from more than 26 million private-sector employees across the United States.
"Hiring was more broad-based in May than we've seen in the last few years," said Dr. Nela Richardson, chief economist, ADP. "The labor market continues to show sustained momentum going into the summer hiring season."
The latest data showed that eight out of ten major industry supersectors posted gains during May, indicating broad participation across the economy.
Service-providing industries accounted for the majority of job growth, adding 114,000 jobs during the month. Education and health services led all sectors with 57,000 new jobs, followed by trade, transportation, and utilities with 36,000 positions added.
Professional and business services added 11,000 jobs, while leisure and hospitality contributed 8,000. Financial activities added 7,000 positions, and other services recorded 4,000 new jobs.
Within goods-producing industries, construction added 8,000 jobs, manufacturing contributed 3,000, while natural resources and mining declined by 3,000 jobs.
The report also noted that April’s total jobs figure was revised downward from 109,000 to 105,000.
By company size, small establishments led hiring activity with 67,000 new jobs. Businesses with 1–19 employees accounted for 49,000 jobs, while firms with 20–49 employees added 18,000 positions.
Large establishments with more than 500 employees added 40,000 jobs, while medium-sized businesses contributed 17,000 positions.
Regionally, the West posted the strongest hiring gains with 45,000 new jobs, followed by the Northeast with 35,000 and the South with 23,000. The Midwest added 21,000 jobs during the month.
The report also highlighted continued wage growth stability. Median annual pay growth for job-stayers remained unchanged at 4.4%, while job-changers saw pay growth slow slightly to 6.5% from 6.6% in April.
Financial activities recorded the strongest annual pay growth among service industries at 5.1%, while manufacturing and large firms each posted wage growth near 4.8%.
The latest ADP data suggests that hiring activity and wage growth remain resilient across the private-sector labor market as businesses continue preparing for increased summer demand.
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