US private-sector employment rose by 253,000 jobs in May from April, according to the ADP national employment report. May’s gain far exceeded the 174,000 gain in April, which was revised downward from 177,000.

Reuters reported US companies in May hired more workers than anticipated by a wide margin to rebound from a six-month low in the prior month, while a tightening labor market should point to increasing wage growth. Its survey of economists had forecast the report would show a gain of 185,000 jobs, with estimates ranging from 155,000 to 240,000.

“Job growth is rip-roaring,” said Mark Zandi, chief economist of Moody’s Analytics, which produces the report in collaboration with ADP. “The current pace of job growth is nearly three times the rate necessary to absorb growth in the labor force. Increasingly, businesses’ number one challenge will be a shortage of labor.”

The number of goods-producing jobs rose by 48,000, and service-providing jobs rose by 205,000.

“May proved to be a very strong month for job growth,” said Ahu Yildirmaz, VP and co-head of the ADP Research Institute. “Professional and business services had the strongest monthly increase since 2014. This may be an indicator of broader strength in the workforce since these services are relied on by many industries.”

Large businesses added 57,000 jobs in May. Midsize businesses added 113,000 jobs and small businesses added 83,000 jobs.