May Sees Private Sector Job Growth Plummet to Lowest Level in Over Two Years with Just 37,000 New Positions

High economic uncertainty has stifled hiring across U.S. businesses. Private-sector job growth decelerated for the second consecutive month, with only 37,000 positions added in May, as per payroll firm ADP's recent estimates. This figure starkly contrasts April's addition of 60,000 jobs and fell short of economists’ forecasts predicting 130,000 new jobs. ADP reported this as the lowest monthly total since March 2023. Nela Richardson, ADP's chief economist, attributed the hiring slowdown to diminished consumer sentiment and trade policy unpredictability, particularly affecting the goods sector, which lost 2,000 jobs. Smaller firms, especially those with fewer than 50 employees, absorbed the largest job losses—13,000 positions. Despite the decline in hiring, wage growth remains solid, with increases of 4.5% for existing employees and 7% for job switchers.