U.S. businesses added 122,000 jobs in May, according to a report from ADP, marking the largest monthly gain in 16 months.
The number, reported by MarketWatch, points to a rebound in private-sector hiring after a prolonged stretch of sluggish job creation. The May figure was described as a sign that the labor market may be regaining some momentum after a long lull.
ADP's monthly report tracks payroll data from private employers across the country and is watched closely as an early indicator ahead of the government's official monthly employment report. The federal jobs report is due out this Friday and is expected to draw significant market attention.
The 16-month high in job creation comes after a period during which hiring had slowed considerably. A reading of 122,000 does not represent a surge by historical standards, but the direction of the data is what analysts tend to focus on when the trend has been weak.
Bond markets and mortgage rates could both react to Friday's official government employment report. A strong number typically pushes yields higher, which in turn lifts borrowing costs across the economy, including mortgage rates. A number that comes in below expectations could have the opposite effect.
The ADP report covers only private-sector employment and does not include government jobs. The official Bureau of Labor Statistics report released each Friday captures both private and public payrolls and includes the widely reported unemployment rate.
