By Joshua Kirby
American employers again dialed down their hiring, a monthly report showed, in a sign the labor market may be weakening amid growing economic uncertainty.
Just 37,000 jobs were created last month, down from 62,000 in April, according to the ADP National Employment report released Wednesday. Economists polled by The Wall Street Journal had expected hiring to pick up pace to 110,000 new jobs on the month. The downturn means jobs growth was its weakest in more than two years.
"After a strong start to the year, hiring is losing momentum," said Nela Richardson, ADP's chief economist.
Signs of weakness in hiring in the private sector contrast to other indications of a robust jobs market. Jobless claims rose in the week through May 24, according to recent Labor Department figures, and there has been little sign elsewhere that gloomier economic sentiment is leading to an uptick in unemployment.
Pay growth meanwhile proved robust, according to ADP's report, suggesting employers are not capitalizing on the lesser job offer to clamp down on wages.
The overwhelming majority of the new jobs created in the private sector in May were in services, especially leisure & hospitality, ADP said. Jobs were lost in manufacturing and in the natural resources/mining industries, by contrast.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
(END) Dow Jones Newswires
06-04-25 0847ET
