U.S. Job Growth Stalls with Lowest Increase in Over Two Years

In a significant slowdown, U.S. private employers added only 37,000 jobs in May, the smallest gain recorded in over two years, according to the ADP National Employment Report. The figures highlight a labor market grappling with economic uncertainties linked to the current administration's tariff policies.

Despite economists' expectations of a 110,000 job increase, the new data marks a stark contrast to the initially reported 62,000-job addition in April, later revised to 60,000. The report, a collaboration between ADP and Stanford Digital Economy Lab, does not correlate with forthcoming labor statistics from the Bureau of Labor Statistics, due Friday.

Commenting on the trends, Oliver Allen at Pantheon Macroeconomics suggested skepticism towards the ADP report due to its inconsistent accuracy. The service sector, however, showed resilience, contributing 36,000 new positions, while goods-producing sectors suffered losses, particularly in manufacturing and mining.

(With inputs from agencies.)