Private sector employment in the U.S. increased by only 37,000 jobs in May, a further slowdown from the 62,000 jobs added in April, according to the ADP National Employment Report. This marks the weakest jobs growth in more than two years, indicating a loss of momentum in hiring.
Nela Richardson, ADP's chief economist, stated that 'hiring is losing momentum' after a strong start to the year. The report showed job losses in manufacturing and natural resources/mining industries, while the overwhelming majority of new jobs were in services, particularly leisure and hospitality.
Despite the downturn in job creation, pay growth remained robust, suggesting that employers are not leveraging the slower hiring environment to suppress wages. This mixed signal highlights ongoing complexities in the labor market.
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