Private sector hiring slowed to a near standstill in May, with just 37,000 new jobs added, according to a report from ADP. This is the lowest monthly job total since March 2023 and below the Dow Jones forecast of 110,000.
The report also showed that wages remained strong, with annual pay growing at a 4.5% rate for existing employees and 7% for new hires. However, this growth was little changed from April.
The ADP report comes as investors await the Bureau of Labor Statistics’ nonfarm payrolls count, which is expected to show a gain of 125,000 jobs and a steady unemployment rate of 4.2%. While the two reports often differ, they provide different snapshots of the labor market at a time when economic conditions are being questioned.
The report’s chief economist, Nela Richardson, said that hiring has lost momentum after a strong start to the year. President Donald Trump has called on the Federal Reserve to lower interest rates, citing the ADP number as evidence that the economy is slowing down.
The labor market data also showed losses in manufacturing, with goods-producing industries losing 2,000 jobs. However, some services sectors, such as leisure and hospitality, saw gains of 38,000. The report found that companies with fewer than 50 workers lost 13,000 jobs, while those with more than 500 employees reported a drop of 3,000.
Overall, the ADP report suggests that the labor market is weakening, with hiring growth slowing down and wages remaining strong but little changed from April.
Source: https://www.cnbc.com/2025/06/04/adp-jobs-report-may-2025-.html