Thursday 2 June 2022 06:07 PM Private payrolls add just 128,000 jobs in May - the worst of the recovery and ... trends now
Private payroll job growth slowed in May, delivering more bad news for President Joe Biden, amid reports that businesses are struggling to recruit workers for open positions, according to the ADP National Employment Report published on Thursday morning.
Companies added 128,000 jobs last month, fall far short of the 300,000 increase that economists had forecast, according to Refinitiv.
The slowdown represented the worst month since April 2020, when workers were sent home as the pandemic took hold and the country went into a huge economic shutdown.
And it comes as the Biden administration is grappling with high inflation and the impact of the war in Ukraine, amid fears of looming inflation.
'Under a backdrop of a tight labor market and elevated inflation, monthly job gains are closer to prepandemic levels,' said Nela Richardson, chief economist at the payroll firm, ADP.
'The job growth rate of hiring has tempered across all industries, while small businesses remain a source of concern as they struggle to keep up with larger firms that have been booming as of late.'
Employment figures released by payroll firm ADP shows job creation slowed last month as employers struggled to fill openings
President Joe Biden is being buffeted by bleak economic conditions only six months ahead of midterms in which Democrats fear losing control of the House and the Senate
Analysts said high inflation and a tight labor market were to blame for the disappointing data
There were more encouraging data elsewhere.
The number of Americans filing fresh claims for unemployment benefits unexpectedly fell last week as demand for labor remained strong.
The weekly unemployment claims report from the Labor Department on Thursday, also showed state jobless benefits rolls declining to their lowest level since 1969 in the second-half of May.
'Job gains across the country are slowing, but few workers are actually losing their jobs,' said Christopher Rupkey, chief economist at FWDBONDS in New York told Reuters.
'This isn't a soft-landing or a hard-landing for the economy yet.
'No sign of company layoffs means the labor market isn't loosening up as much as Fed officials were
