Private payrolls rose by smaller-than-expected 152,000 in May – ADP
2024.06.05 08:43
Investing.com — Private payrolls increased at a slower-than-anticipated rate in May, in the latest sign of a cooling in the U.S. labor market.
Companies added 152,000 workers during the month, falling from a downwardly revised total of 188,000 in the prior month, according to from payrolls processor ADP. Economists had predicted a reading of 173,000.
“Job gains and pay growth are slowing going into the second half of the year,” said ADP Chief Economist Nela Richardson in a statement.
The data comes a day after a separate report showed that job openings slipped to their lowest level in over three years in April.
These numbers point to a possible easing in labor demand in the world’s largest economy, a trend that could fortify projections that the Federal Reserve will choose to slash interest rates later this year. In theory, a slowdown in the jobs market may relieve some upward pressure on wages and, by extension, inflation.
Richardson said the labor market currently remains “solid,” but flagged “pockets of weakness tied to both producers and consumers.”
Traders will have a chance to further piece together the U.S. jobs picture on Friday, when the all-important monthly report is scheduled to be released.
