US private employers added just 37,000 jobs in May 2024, marking the smallest monthly gain since March 2023. This figure fell significantly short of economists’ expectations of 110,000 new jobs and represents a decline from April’s revised 60,000 job additions. Despite these weak numbers, economists caution against reading too much into the ADP report, citing its poor track record in recent years for accurately predicting official employment data.
The services sector carried nearly all job growth, adding 36,000 positions primarily in financial activities, information, and hospitality. Meanwhile, the goods-producing sector lost 2,000 jobs due to declines in manufacturing and mining. Economists suggest the labor market is gradually cooling amid economic uncertainty related to the Trump administration’s tariff policies. The official government employment report, due Friday, is expected to show stronger numbers with 130,000 total jobs added.