Private sector job creation swung higher in May after a lackluster April, with companies adding 201,000 positions for the month, according to payroll firm ADP.
The number was just about in line with expectations for a 200,000 gain thanks largely to a big gain in service sector jobs. (Tweet this) The group added 192,000 positions, a big gain from the 164,000 the previous month.
Wall Street is keeping a close eye on the jobs market for clues about when the Federal Reserve will start hiking interest rates. Consensus is split between the first hike in nine years happening in September or December.
ADP's report, put together in conjunction with Moody's Analytics, helps bolster the case that the labor market is improving enough for the U.S. central bank to begin its tightening cycle. The Fed cut short-term rates to near-zero at the depths of the financial crisis in late 2008.