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Private sector employment in the US fell below expectations in May

Private sector employment in the US increased by only 37 thousand people in May, well below expectations.

Private sector employment in the US fell below expectations in May

The data is based on a national employment report produced by the ADP Research Institute in collaboration with the Stanford Digital Economy Lab. The report revealed employment data by analyzing payroll information for more than 25 million workers. The increase was recorded as the lowest employment gain since March 2023. Markets were expecting an increase of about 111 thousand people in this period.

Last month's data was also revised downwards. The employment increase, which was previously announced as 62 thousand in April, was reduced to 60 thousand. Looking at the sectoral breakdown, employment in the services sector increased by 36 thousand in May, while employment in the manufacturing sector decreased by 2 thousand.

According to the employment analysis based on payroll data, annual wage growth was recorded as 4.5% in May. It is noteworthy that hiring, which was strong at the beginning of the year, started to lose momentum in the second quarter.

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