Overview

• ADP data showed U.S. private sector added just 37,000 jobs in May, missing the 110,000 forecast and marking the weakest gain since March 2023.
• Goods-producing industries lost jobs in mining and manufacturing as higher input costs and supply chain disruptions weighed on hiring.
• Service sectors such as leisure, hospitality and financial activities posted modest growth even as overall employment momentum slowed.
• Pay growth held at 4.5% for employees who stayed in their roles and rose to 7.0% for those who switched jobs, underscoring persistent wage pressures.
• President Trump publicly urged Fed Chair Jerome Powell to cut interest rates and analysts await Friday’s official nonfarm payrolls report, which economists expect to show a 125,000-job increase.