ADP: Private payrolls grew by 37,000 in May; lowest rate since 2023

UPI

3 days ago

ADP reported that private payrolls in March grew by 37,000, the slowest pace since 2023. File Photo by Tasos Katopodis/UPI | License Photo
June 4 (UPI) -- Private payroll processor ADP reported Wednesday that May private sector job growth was at its lowest level in two years.
U.S. private employers added 37,000 jobs in May, the lowest pace of hiring since March 2023, ADP's monthly report said.
"After a strong start to the year, hiring is losing momentum," ADP Chief Economist Nela Richardson said in a statement. "Pay growth, however, was little changed in May, holding at robust levels for both job-stayers and job-changers."
The Dow Jones consensus expectation was 110,000.
ADP May data showed 38,000 jobs created in leisure and hospitality, 20,000 created in financial services and 8,000 in information.
But professional and business services lost 17,000, education and health services lost 13,000, and natural resources and mining saw a 5,000 decline in jobs.
Goods-producing industries lost a net 2,000 jobs with manufacturing down by 3,000.
President Donald Trump referenced the ADP report as he again called on Federal Reserve Chair Jerome Powell to lower interest rates.
"ADP NUMBER OUT!!! 'Too Late' Powell must now LOWER THE RATE. He is unbelievable!!! Europe has lowered NINE TIMES!" Trump wrote on Truth Social.
While the labor market weakened in May, pay gains held steady.
ADP found that year-over-year pay increased in May by 4.5% for workers who stayed in their jobs. Pay rose 7% for job-changers.
Financial services jobs had the greatest impact on pay gain of 5.2% for job-stayers.
By region, the West gained 37,000 jobs and the Midwest gained 20,000.
The Northeast lost 19,000 jobs and the South lost 5,000.
Medium-sized employers with 50 to 499 employees added a net 49,000 jobs.
But small and large employers lost 13,000 and 3,000 jobs respectively.