U.S. private employers increased hiring in May and new applications for jobless benefits fell last week, further boosting the economic outlook for the second quarter.
Another report today showed planned layoffs by U.S.-based employers fell 53% to a five-month low last month, Reuters reports.
The steady stream of upbeat data suggest the economy is regaining momentum after growth slowed sharply at the start of the year, which could allow the Federal Reserve to raise interest rates later this month or in July.
“Labor market conditions are stable, which is all the reassurance the Fed will need to act soon,” says Paul Ashworth, chief U.S. economist at Capital Economics in Toronto.
The ADP National Employment Report showed private payrolls increased 173,000 last month on top of the 166,000 jobs added in April. Gains in private employment were nearly broad-based last month, though manufacturing lost 3,000 jobs.
The construction industry added 13,000 jobs, and services industry employment increased by 175,000 jobs.
The ADP report, jointly developed with Moody’s Analytics, was published ahead of the release on Friday of the government’s more comprehensive employment report for May.
