American businesses added far fewer new jobs in May than expected, making the month the worst of the year so far, a new report shows.
According to payroll giant ADP, U.S. businesses added just 152,000 new jobs in May.
The figure fell far short of the 175,000 new jobs economists had forecast for the month.
In a statement about the figures, ADP’s chief economist Nela Richardson said:
“Job gains and pay growth are slowing going into the second half of the year.
“The labor market is solid, but we’re monitoring notable pockets of weakness tied to both producers and consumers.”
The bulk of new jobs came from health care and education.
The two sectors are less dependent on broader economic trends than others.
These are sometimes called “government-adjacent” sectors.
There was, however, a lot of strength in trade and shipping and construction.
These two parts of the labor market often indicate economic trends.
Trade, transportation, and utilities added 55,000 jobs and construction added 32,000.
Financial services also added jobs in May, with payrolls growing by 28,000.
However, information, manufacturing, professional services, and mining all shed jobs.
Additionally, revised figures showed that job gains in April were slightly reduced to 188,000.
ADP said workers who stayed in their jobs received a 5 percent pay increase over the past year.
This was unchanged for three months.
Meanwhile, job switchers saw a 7.8% percent pay bump.
However, this figure has been falling and is expected to continue its decline.
Two years ago, job switchers enjoyed a peak increase of 16.4 percent.
The ADP report tracks only private-sector hiring.
It is not intended to predict the official jobs report.
Instead, ADP says it is an independent measure of the labor market.
The official report will be published by Democrat President Joe Biden’s administration on Friday.
Economists expect Biden’s Labor Department to say the economy added 195,000 jobs in May.
this would be an increase from April’s 175,000.
In a separate report Tuesday, the Labor Dept. said job openings fell to 8.1 million.
While missing expectations, the figure is a sharp decline from the prior month’s 8.4 million.
READ MORE – Tucker Carlson Describes Meeting ‘Elderly Idiot’ Klaus Schwab: ‘Totally Unimpressive’
