WASHINGTON: US private sector hiring hit its slowest pace since early 2023 in May, according to data from payroll firm ADP on Wednesday, significantly missing expectations in a month where all eyes are on the effects of President Donald Trump’s trade war.
Private sector employment rose by 37,000 jobs last month, slowing from the 60,000 figure in April and swiftly drawing a fiery response from Trump on social media.
“’Too Late’ Powell must now LOWER THE RATE,“ Trump said on his Truth Social platform, blasting Federal Reserve Chair Jerome Powell whom he has repeatedly pressured to cut the benchmark lending rate.
While the US central bank has started bringing down interest rates from the high levels of recent years, officials have proceeded cautiously as they monitor progress in cooling stubborn inflation.
When inflation is low, central banks may opt to reduce rates, which typically encourages economic activity by reducing borrowing costs.
But Trump’s frustration comes at a time when “hiring is losing momentum” after a strong start to this year, according to ADP chief economist Nela Richardson.
She added in a statement that pay growth was also “little changed in May.”
