FX.co ★ US Private Sector Job Growth Lowest in 2 Years: ADP

In May 2025, private sector businesses in the United States expanded their workforce by 37,000, marking the lowest increase since March 2023. This figure is a significant drop from April's downwardly revised total of 60,000 and falls short of the predicted 115,000. Within the services sector, there was a net addition of 36,000 jobs, largely driven by increases in the leisure and hospitality (38,000), financial activities (20,000), and information (8,000) sectors. However, this was partially offset by job declines in professional and business services (-17,000), education and health (-13,000), and trade, transportation, and utilities (-4,000). In contrast, the goods-producing sector saw a reduction of 2,000 jobs, with declines in natural resources and mining (-5,000) and manufacturing (-3,000) outweighing a gain of 6,000 jobs in construction. Additionally, the growth in annual pay for individuals remaining in their current jobs held steady at 4.5%, while those who changed jobs experienced a 7% salary increase, consistent with April's adjusted data. Dr. Nela Richardson, ADP's chief economist, noted, "While the year began with strong hiring, we are now seeing a deceleration in job growth. Despite this, wage growth in May remained steady at high levels for both job-stayers and job-changers."