US private-sector hiring falls to slowest pace in over 2 years

The US private sector added far fewer jobs than expected in May, posting its sluggish hiring pace in more than two years, amid heightening concerns about a slowing labor market and economy on President Donald Trump's protectionist policies.

According to ADP's monthly report released today, June 4, the US private sector added 37,000 jobs in May, below the 110,000 estimate, compared to April's revised 60,000.

Job gains were mainly concentrated in service-providing sectors such as leisure and hospitality, which added 38,000 jobs, alongside the financial activities which added 20,000 jobs. 

On the other hand, goods-producing industries lost 17,000 jobs, with employment also declining by 5,000 jobs in mining and manfacturing.

Wage growth maintained a steady pace of 4.5% year-on-year (YoY) in May, according to the recent ADP data.

"Hiring is losing momentum" in the US, following a strong start this year, while pay growth has "little changed in May", said ADP Chief Economist Nela Richardson in the report.

Investors are awaiting the release of the monthly US jobs report by the Labor Department on Friday. Forecasts suggest the addition of 125,000 new jobs in May, with unemployment rate remaining flat at 4.2%.