US private payrolls growth slows sharply in May
WASHINGTON: US private payrolls increased far less than expected in May, the ADP National Employment Report showed on Wednesday.
Private payrolls increased by only 37,000 jobs last month after a downwardly revised 60,000 rise in April.
Economists polled by Reuters had forecast private employment increasing 110,000 following a previously reported gain of 62,000 in April.
The ADP report, jointly developed with the Stanford Digital Economy Lab, was published ahead of the more comprehensive employment report for May due to be released on Friday by the Labor Department's Bureau of Labor Statistics. There is no correlation between the ADP and BLS employment reports.
The labor market continues to ease amid economic uncertainty from tariffs. Government data on Tuesday showed there were 1.03 job openings for every unemployed person in April, little changed from March.
Private payrolls likely increased by 120,000 jobs in May after advancing 167,000 in April, a Reuters survey showed. Overall nonfarm payrolls are estimated to have increased by 130,000 jobs after rising 177,000 in April.
The unemployment rate is forecast to be unchanged at 4.2%.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
11 hours ago
- Business Recorder
Dollar rises against major peers
NEW YORK: The dollar rose against major currencies on Friday after data showed better-than-expected US jobs growth in May despite a slowdown from the previous month, suggesting the Federal Reserve might wait longer to cut interest rates. Labor Department data showed that employers added 139,000 jobs in May, fewer than the 147,000 jobs added in April, but exceeding the 130,000 gain forecast in a Reuters poll of economists. The dollar was up 0.84% to 144.72 against the Japanese yen and added 0.33% to 0.823 against the Swiss franc . The greenback had extended gains against both safe-haven currencies following the data. The US currency was headed for a second straight weekly gain against both the yen and franc, but it was still down about 8% year-to-date and about 9% year-to-date, respectively, against both currencies. The dollar has been weighed down by uncertainty from President Donald Trump's tariff policies and the prospects of negotiations with trading partners, the deficit spending and tax bill being considered in the Senate after it passed the House, and the trajectory of recent economic data, said Eugene Epstein, head of structuring for North America at Moneycorp in New Jersey. But the market is starting to reverse some of its short positioning against the dollar in the wake of stronger-than-expected economic data, including the jobs data, Epstein said. 'Every bank is forecasting a weaker dollar, which I think is probably the right call long-term. But now you have this stretched positioning and suddenly reversing everything since you have stronger jobs numbers and stronger hourly earnings. The numbers are stronger overall and now good news is bad news because the 10-year yields went up so the cuts are not going to come,' Epstein said. The euro added to losses against the dollar immediately after the jobs data and was down 0.28% at $1.1413. The single currency, which is headed for a weekly gain against the greenback, had hit a six-week high of $1.14950 on Thursday following comments by European Central Bank President Christine Lagarde that the central bank was nearing the end of the monetary policy easing cycle. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.38% to 99.05 on the session, but it is on track to notch a weekly loss. Trump and Chinese leader Xi Jinping held a rare leader-to-leader call on Thursday, as tensions over tit-for-tat tariffs appearing to be easing. The dollar strengthened 0.22% to 7.190 versus the offshore Chinese yuan. Bitcoin gained 4.10% to $104,632.06. Ethereum rose 4.67% to $2,510.82.
Business Recorder
11 hours ago
- Business Recorder
Russian rouble falls vs US dollar
MOSCOW: The Russian rouble fell against the US dollar on Friday ahead of the central bank's decision on its key interest rate and after strengthening late in the previous session. By 0735 GMT, the rouble was down 2.9% at 79.50 per US dollar, according to LSEG data based on over-the-counter quotes. The rouble has rallied by around 40% against the greenback so far this year. A Reuters poll of 26 economists showed on Monday that the central bank was expected to keep its main interest rate on hold at 21% at its board meeting on Friday, but might soften its rhetoric and signal rate cuts later in the year. A growing number of analysts are saying that with the sharp slowdown of the economy and a decelerating inflation rate, the central bank might surprise the market with a cut at the upcoming meeting, triggering a weakening of the rouble.
Express Tribune
12 hours ago
- Express Tribune
Starlink's internet comes with risks
Starlink logo is seen on a smartphone in front of displayed Ukrainian flag in this illustration taken February 27, 2022. PHOTO: REUTERS/FILE The Starlink Internet Services in Pakistan has yet to commence the satellite-based internet services in Pakistan from Low Earth Orbit (LEO) in the wake of emerging challenges and concerns expressed by experts and public. According to experts, Starlink entry is contingent upon resolving regulatory, security, and political concerns, besides the high cost of the service also poses a barrier to widespread adoption among the general public and business community. In Pakistan, one of the key factors is its cost for the users, initial as well as monthly. Starlink's home plans are estimated at Rs35,000 per month with a one-time setup fee of Rs110,000, while business plans can reach Rs95,000 with a setup fee of Rs220,000. In contrast, a local ISPs offer fiber-optic plans ranging from Rs2,500 to Rs12,000 per month, thus making Starlink unaffordable for many people because of the low economy of the country the accessibility for households is not feasible. In March 2025, Starlink was granted a temporary no-objection certificate (NOC) to operate in Pakistan. However, this was not a full licence, and the company still had to meet all the regulatory requirements. Moreover, security clearance is still pending. Starlink has not received the necessary security clearance from the Interior Ministry - a prerequisite for obtaining an operating license from the Pakistan Telecommunication Authority (PTA). Starlink is required to comply with the National Space Policy regulations, which has contributed to the delays. "Starlink operates independently of local ISPs and national internet gateways, users may be able to access objectionable content banned by the PTA [such as politically-sensitive websites], said Hannan Gillani an IT expert. "It could bypass state filters, firewalls, and monitoring systems and these challenges could provoke a legal, and political, backlash and problem for state authority over internet governance. Therefore, the PTA should develop a mechanism before issuing the final licence to Starlink in Pakistan," he added. About the payment method, Gillani said, if subscription fees were paid in US dollar via international payment methods, like credit cards, it would increase the dollar outflows from Pakistan's already fragile foreign reserves. Unless Starlink agreed to local billing in Pakistani rupees through the State Bank of Pakistan (SBP)-regulated channels, the economic burden could grow with more subscribers," the IT expert warned. A PTA official commented that Starlink's entry in Pakistan could significantly boost connectivity, particularly in under-served and remote regions, but added that the authority was carefully reviewing all regulatory, technical, and security aspects before granting full operational approval to it. The official acknowledged that affordability remained a valid concern for the users, and "we are committed to ensuring that any such service introduced in Pakistan aligns with our national ICT goals and remains accessible" to the public.
