Cheyenne Suarez

US private sector hiring lowest in 2 years, drawing Trump ire

Article (news)

Agence France-Presse

<div><br/></div><div><span class="fr-img-caption fr-fic fr-dib" style="width:950px"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/1749079502906trump.jpg" style="width:950px" class="fr-fic fr-dib" alt="US President Donald Trump listens to a reporter&#x27;s question during an Ambassador Meeting in the Cabinet Room of the White House on March 25, 2025 in Washington, DC. Win McNamee, Getty Images/AFP"/><span class="fr-inner" style="text-align:left">US President Donald Trump listens to a reporter&#x27;s question during an Ambassador Meeting in the Cabinet Room of the White House on March 25, 2025 in Washington, DC. <em>Win McNamee, Getty Images/AFP </em></span></span></span></div><div><br/></div><p>WASHINGTON - US private sector hiring hit its slowest pace since 2023 in May, according to data Wednesday from payroll firm ADP, significantly missing expectations in a month where all eyes are on the effects of President Donald Trump&#x27;s trade war.</p><p>Private sector employment rose by 37,000 jobs last month, slowing from the 60,000 figure in April, and missing a Briefing.com expectation of 115,000.</p><p>Trump immediately reacted by pressuring independent Federal Reserve Chair Jerome Powell to cut interest rates.</p><p>&quot;&#x27;Too Late&#x27; Powell must now LOWER THE RATE,&quot; Trump said on his Truth Social platform.</p><p>While the US central bank has started bringing down rates from the high levels of recent years, officials have proceeded cautiously as they monitor progress in cooling stubborn inflation.</p><p>When inflation is low, central banks may opt to reduce rates, which typically encourages economic activity by reducing borrowing costs.</p><p>But Trump&#x27;s frustration comes at a time when &quot;hiring is losing momentum&quot; after a strong start to this year, according to ADP chief economist Nela Richardson.</p><p>She added in a statement that pay growth was also &quot;little changed in May.&quot;</p><p>Service-providing sectors like leisure and hospitality, as well as financial activities, still logged gains, according to the ADP report.</p><p>Goods-producing industries saw a net loss in jobs last month, with employment declining in mining and manufacturing.</p><p>Some service sectors also saw job losses, including trade and transportation, as well as business services and education or health services.</p><p>Pay growth for those who remained in their jobs was little changed at 4.5 percent.</p><p>For those who switched jobs, pay growth was 7.0 percent.</p><div><br/></div><div><strong>- &#x27;A dark result&#x27; -</strong></div><div><br/></div><p>Analysts are keeping a close eye on US economic data this week, with official employment figures due Friday.</p><p>While ADP figures may diverge from the government numbers, experts are monitoring the effects of Trump&#x27;s global tariffs as they sweep through the world&#x27;s biggest economy.</p><p>&quot;This may be the tip of an iceberg, but it also could be a false start,&quot; said Carl Weinberg, chief economist at High Frequency Economics.</p><p>&quot;Whether this report is accurate or not, traders and investors will read today&#x27;s number as a dark result for trading,&quot; he added.</p><p>Weinberg also cautioned that as companies get more clarity about tariffs, they could respond to the increased chance of tariff-induced cost hikes by becoming more aggressive about trimming their workforces.</p><p>For now, US services sector activity shrank in May for the first time since mid-2024 too, according to the Institute for Supply Management, as Trump&#x27;s tariffs fueled prices and uncertainty.</p><p>Since returning to the presidency, Trump has slapped a 10 percent tariff on most trading partners, alongside higher rates on dozens of economies, including the European Union, that have since been put on pause until early July.</p><p>He has also taken special aim at China with tit-for-tat levies between Washington and Beijing reaching three-figures before both sides reached a temporary deal to lower levels last month.</p><p>But the seesawing of Trump&#x27;s trade policies has snarled supply chains, roiled financial markets and weighed on consumer sentiment.</p><p>&quot;Manufacturing employment is suffering from higher input costs and disruptions to supply chains. At least one vehicle producer was forced to idle production during the first half of May; that is reminiscent of the pandemic,&quot; warned KPMG chief economist Diane Swonk in a recent note.</p><div><strong>bys/aha</strong></div><div><strong>© Agence France-Presse</strong></div>

<p>US private sector hiring hit its slowest pace since 2023 in May, according to data Wednesday from payroll firm ADP, significantly missing expectations in a month where all eyes are on the effects of President Donald Trump's trade war.</p>

US private sector hiring hit its slowest pace since 2023 in May, according to data Wednesday from payroll firm ADP, significantly missing expectations in a month where all eyes are on the effects of President Donald Trump's trade war.