US private payrolls beat expectations in May

Customers enter a McDonald's restaurant near an employment sign visible in Atlantic Highlands, N.J. (AP Photo/Julio Cortez, File)

WASHINGTON: U.S. private payrolls increased more than expected in May, suggesting that the labor market was slowing only gradually, which could result in the Federal Reserve keeping interest rates elevated for some time.

Private payrolls increased by 278,000 jobs last month, the ADP National Employment report showed on Thursday. Data for April was revised slightly down to show 291,000 jobs added instead of 296,000 as previously reported. Economists polled by Reuters had forecast private employment increasing 170,000.