U.S. businesses add 122,000 jobs in May, largest gain in 16 months

U.S. businesses added 122,000 jobs in May, the largest monthly increase in 16 months, according to ADP data released Wednesday. The figure marks a clear pickup from the sluggish pace that had prevailed in recent months.

Payroll growth details The May increase was concentrated in service-providing industries, with professional and business services leading the gains. Goods-producing sectors also contributed positively, though at a more modest pace. ADP said the data reflect renewed hiring momentum after an extended lull.

Labor market context The report comes as other indicators have shown mixed signals on the strength of demand for workers. Hiring had slowed noticeably earlier in the year before the latest rebound. Market participants will watch upcoming government employment data for confirmation of the trend.

Outlook for hiring Analysts note that sustained job growth will depend on continued consumer spending and business investment. Further monthly readings will clarify whether the May increase represents a durable shift or a temporary rebound.