US private payrolls growth slows sharply in May
U.S. 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%.
(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)
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