Job creation surged in May thanks to a jump in construction positions and a boom in professional and business services, according to a report Thursday from ADP and Moody's Analytics.
Private payrolls increased by 253,000, well ahead of expectations. Economists surveyed by Reuters expected the report to show that private payrolls grew by 185,000 in May from 174,000 in April.
The growth "is three times the rate of the growth in the underlying labor force," Mark Zandi, the chief economist at Moody's Analytics, told CNBC. "So that means the unemployment rate, which is 4.4 percent, is quickly headed to 4 percent. This labor market is rip-roaring and getting really tight."
Services broadly led the way with 205,000 new jobs, with professional and business services contributing 88,000 — its best month in about three years — and education and health services adding 54,000.
The complete story here > Job growth 'rip-roaring' in May on boom in construction, services