WASHINGTON, June 3 (Reuters) - U.S. private payrolls increased more than expected in May, the ADP's national employment report showed on Wednesday.
Private employment rose by 122,000 jobs last month after a downwardly revised 105,000 gain in April. Economists polled by Reuters had forecast private employment increasing by 117,000 jobs after a previously reported 109,000 advance in April.
The ADP report is jointly developed with the Stanford Digital Economy Lab, and was published ahead of the Bureau
of Labor Statistics' more comprehensive and closely watched employment report for May on Friday. ADP has been a poor predictor of the BLS's private payrolls estimate.
The labor market has regained its footing after wobbling last year amid uncertainty stemming mostly from tariffs. While the U.S.-Israel war with Iran has raised commodity prices and fanned inflation, layoffs have remained historically low.
Nonfarm payrolls likely increased by 85,000 jobs in May after rising 115,000 in April, a Reuters survey of economists predicted. The unemployment rate is forecast to be holding steady at 4.3%.
Financial markets expect the Federal Reserve will keep its benchmark overnight interest rate in the 3.50%-3.75% range into next year, while monitoring the inflation fallout from the war.
Inflation increased at its fastest pace in three years in April, the government reported last week.
(Reporting By Lucia Mutikani; Editing by Chizu Nomiyama)
