U.S. private employers increased hiring in May and new applications for jobless benefits fell last week, further boosting the economic outlook for the second quarter.

Another report on Thursday showed planned layoffs by U.S.-based employers fell 53 percent to a five-month low last month.

The steady stream of upbeat data suggest the economy is regaining momentum after growth slowed sharply at the start of the year, which could allow the Federal Reserve to raise interest rates later this month or in July.

“Labor market conditions are stable, which is all the reassurance the Fed will need to act soon,” said Paul Ashworth chief U.S. economist at Capital Economics in Toronto.

The ADP National Employment Report showed private payrolls increased 173,000 last month on top of the 166,000 jobs added in April. The ADP report, jointly developed with Moody’s Analytics, was published ahead of the release on Friday of the government’s more comprehensive employment report for May.

In a second report on Thursday, the Labor Department said initial claims for state unemployment benefits slipped 1,000 to a seasonally adjusted 267,000 for the week ended May 28. Claims have now been below 300,000, a threshold associated with a strong job market, for 65 straight weeks, the longest streak since 1973.