Breaking: US Private Sector Hiring Misses Forecast, Adds Only 37,000 Jobs in May

Breaking: US Private Sector Hiring Misses Forecast, Adds Only 37,000 Jobs in May

Hiring Momentum Slows While Wage Growth Holds Steady

The US private sector added just 37,000 jobs in May, well below the 115,000 forecast, according to the latest report from Automatic Data Processing (ADP) released Wednesday. This marked a steep drop from April's upwardly revised 60,000 jobs and highlights increasing signs of a labor market slowdown.

Economists React: Momentum Is Fading

“Following a solid start to the year, hiring is losing momentum,”
said Dr. Nela Richardson, ADP's chief economist.
“Pay growth, though, was effectively flat in May, still at robust levels for both job-stayers and job-changers.”

Year-over-year, annual pay rose 4.5%, maintaining strength despite cooling job creation. The divergence between wage strength and hiring suggests employers are holding on to current workers but slowing new additions.

Market Implications

This significant miss on job growth could add pressure on the US Dollar, as investors reassess the trajectory of Federal Reserve policy, especially if labor market softness is echoed in Friday’s Nonfarm Payrolls (NFP) data.

Related Reads on Tredu.com

• US Dollar Reaction to Economic Data
• Wage Growth vs. Job Creation: What It Means for the Fed
• May 2025 ADP Report Breakdown
• Market Forecasts Ahead of NFP