Private-sector hiring in the U.S. nearly stalled in May, with just 37,000 jobs added—the lowest monthly gain in more than two years. The weak data triggered an all-caps outburst from President Donald Trump, who blamed Federal Reserve Chair Jerome Powell for not cutting interest rates fast enough.
“ADP NUMBER OUT!!! ‘Too Late’ Powell must now LOWER THE RATE. He is unbelievable!!! Europe has lowered NINE TIMES!” Trump wrote on Truth Social.
While Trump went after Powell, economists say the president’s own trade war and tariff threats have been a major driver of the uncertainty now weighing on business investment and hiring.
The numbers, released Wednesday by payroll firm ADP, fell far short of economists’ expectations of 130,000 new jobs. April’s already sluggish total was revised down to 60,000.
“This is not a collapsing labor market, but there is hiring hesitancy,” said Nela Richardson, ADP’s chief economist. She pointed to weak consumer confidence and trade policy uncertainty as key reasons employers are slowing down.
One of the biggest drags came from the goods-producing sector, which actually lost 2,000 jobs in May. Businesses are clearly feeling the strain as ongoing trade tensions and unpredictable tariffs disrupt supply chains and cloud financial planning.
“It’s like driving through fog for some of our firms here,” Richardson said. “You can’t really stop, but you might slow down … when it comes to hiring, there’s a hesitancy because of a wide level of uncertainty.”
Despite the hiring freeze, wage growth remained steady. Workers who stayed at their jobs saw average pay increases of 4.5%, while those who switched jobs saw gains of 7%.
ADP’s private-sector report is often seen as a preview of the government’s official monthly employment report, due Friday. But Wednesday’s data has already sent a clear signal: U.S. job growth is losing steam and Trump’s tariffs are in the spotlight.
