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05/06/24
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ADP Data Shows Private Payrolls in May Rose by Less-Than-Expected 152K
In May, private payrolls increased at a slower rate than expected in the latest indication that the U.S. labor market is cooling.
According to figures from payroll processor ADP, during the month companies added 152K jobs, dropping from a downwardly adjusted total of 188K in the previous month. Economists had expected 173K jobs would have been added.
In a statement, ADP Chief Economist Nela Richardson said pay growth and job gains were slowing going into the second part of this year.
The data came a day after another report showed that job openings in April dropped to the lowest level in more than 3 years.
The numbers indicate that labor demand in the world’s biggest economy may possibly be easing, a trend that may solidify expectations that the Federal Reserve will cut interest rates later in the year.
A slowdown in the jobs market may in theory relieve some upward pressure on wages and therefore on inflation.
Richardson said that the labor market was currently solid, but added that there were pockets of weakness tied to both consumers and producers.
On Friday traders will have an opportunity to evaluate the U.S. jobs picture further, when the monthly nonfarm payrolls report will be released.
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