The pace of U.S private ADP payrolls growth in May fell short of expectations, indicating a potential slowdown in the U.S. labor market, according to data released by payrolls processor ADP.
In May, companies added 152,000 workers, a decline from the downwardly revised total of 188,000 in the previous month. Economists had anticipated a more robust reading of 173,000, underscoring concerns about the pace of hiring.
This report comes on the heels of another concerning sign: job openings dropped to their lowest level in over three years in April, suggesting a softening in labor demand.
These developments raise the possibility of a cooling in the world's largest economy, prompting speculation that the Federal Reserve may consider interest rate cuts later this year. A slowdown in job growth could alleviate pressure on wages and inflation, providing room for monetary policy adjustments.
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