Hiring by U.S. companies slowed more than expected in May, pointing to a labor market that is continuing to cool in the face of higher interest rates, according to the ADP National Employment Report released Wednesday morning.
Companies added 152,000 jobs last month, below both the 175,000 increase predicted by LSEG economists and the downwardly revised April gain of 188,000. It marked the worst month for job creation since January.
At the same time, the report showed that wage growth — a key driver of inflation — held steady at 5%, where it has been for three straight months. For workers who changed jobs, wages climbed 7.8%, a steep drop from the 9.3% boost recorded in April.
“Job gains and pay growth are slowing going into the second half of the year,” said Nela Richardson, ADP chief economist. “The labor market is solid, but we’re monitoring notable pockets of weakness tied to both producers and consumers.”
This is a developing story. Please check back for updates.
Read the full article here
