U.S. jobs growth continues in May as labor market tightens, ADP says

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The numbers: The U.S. added 178,000 private-sector jobs in May, payrolls processor ADP said Wednesday. April’s figure, meanwhile, was revised downward by 41,000 to 163,000.

The figures come in advance of Friday’s report from the Labor Department, with economists polled by MarketWatch forecasting the addition of 198,000 jobs, in both the private and public sectors.

What happened: Hiring was spread across industries and company size. Medium-sized businesses — those with 50 to 499 employees — added 84,000 jobs, while large businesses added 56,000 positions and small ones added 38,000 employees.

By industry, there were 61,000 new professional- and business-services jobs, 39,000 new construction jobs, 35,000 education and health positions, and 33,000 new jobs in leisure and hospitality.

There were 23,000 jobs lost in trade, transportation and utilities.

The big picture: Jobs growth is still quite solid considering the unemployment rate is just 3.9%. Companies continue to report finding it difficult to add qualified candidates, with such statements born out by the high number of job openings.

What they’re saying: “The hot job market has cooled slightly as the labor market continues to tighten,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.

Market reaction: After Tuesday’s rout on concerns over Italy, U.S. stock-market futures were pointing to opening gains for the Dow Jones Industrial Average and the broader benchmark S&P 500  .