The US private sector added more jobs than expected in May

Employment in the private sector rose by 278,000 jobs in May, according to a report by the “ADB” Research Institute, Thursday, exceeding analysts’ estimates of 170,000 jobs, but it was less than the downwardly revised level of 291,000 jobs in April.

The job growth was supported by the leisure and hospitality sector, as well as the natural resources and construction sectors, which helped offset in manufacturing and finance sector jobs.

Meanwhile, wage growth slowed broadly. Compensation for workers who changed jobs rose 12.1 percent, down a full percentage point month on month.

For those who stayed in their current jobs, the rise was 6.5 percent, slowing from 6.7 percent.

“Wage growth is slowing significantly, and wage-driven inflation may be the least concern for the economy despite strong employment,” said Nella Richardson, chief economist at ADP.

Although not directly related, the ADP figures provide a precursor to the long-awaited release of the Labor Department’s most comprehensive non-farm payrolls report, which is due Friday.

Analysts expect that the world’s largest economy added 180,000 jobs last month, down from 253,000 jobs in April.

Fed policymakers said they will be watching employment readings closely to see if the year-round cycle of policy tightening slows the labor market and, in theory, that easing could contribute to their ultimate goal of slowing inflation.