US private sector employment rises more than expected in May - ADP

(Sharecast News) - Private sector employment in the US rose more than expected in May, according to figures released on Wednesday by ADP.

Employment rose by 122,000 from April, versus expectations for a 110,000 increase. Meanwhile, the figure for April was revised to 105,000 jobs added, from 109,000.

Small businesses with fewer than 50 employees added 67,000 jobs while medium businesses with between 50 and 499 employees added 17,000. Large business with more than 500 employees created an additional 40,000 jobs.

The service sector added 114,000 jobs, while the goods-producing sector saw an 8,000 increase.

Year-over-year pay growth for job-stayers was steady at 4.4%, while for job-changers, it eased to 6.5% in May from 6.6% the month before.

Nela Richardson, chief economist at ADP, said: "Hiring was more broad-based in May than we've seen in the last few years. The labour market continues to show sustained momentum going into the summer hiring season."