Financial News: U.S. Private Sector Job Growth Slows More Than

U.S. Private Sector Job Growth Slows More Than Expected In May

06/05/2024 - 08:57:00 (RTTNews)

(RTTNews) - A report released by payroll processor ADP on Wednesday showed private sector job growth in the U.S. slowed by more than expected in the month of May.

ADP said private sector employment climbed by 152,000 jobs in May after jumping by a downwardly revised 188,000 jobs in April.

Economists had expected private sector employment to increase by 173,000 jobs compared to the addition of 192,000 jobs originally reported for the previous month.

"Job gains and pay growth are slowing going into the second half of the year," said ADP chief economist Nela Richardson. "The labor market is solid, but we're monitoring notable pockets of weakness tied to both producers and consumers."

The report said employment in the service-providing sector rose by 149,000 jobs, reflecting notable increases in employment in the trade/transportation/utilities and education/health services industries.

Meanwhile, employment in the goods-producing sector crept up by 3,000 jobs, as an uptick in employment in the construction industry was largely offset by decreases in employment in the construction and natural resources/mining industries.

ADP also said employment at large and medium establishments climbed by 98,000 jobs and 79,000 jobs, respectively, while employment at small establishments edged down by 10,000 jobs.

The report also said year-over-year pay growth for job-changers fell for the second month, slowing to 7.8 percent. Pay growth for job-stayers held steady for the third month at 5 percent.

On Friday, the Labor Department is scheduled to release its more closely watched monthly jobs report, which includes both public and private sector jobs.

Economists currently expect the report to show employment jumped by 185,000 jobs in May after climbing by 175,000 jobs in April, while the unemployment rate is expected to hold at 3.9 percent.

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