The data coincides with a period of uncertainty due to the increase in inflation.
Employment in private companies in the United States grew in May at its slowest pace since the beginning of the recovery after the collapse brought by the covid-19 pandemic, adding 128,000 new jobs compared to April.
This is pointed out by the monthly report on employment published by ADP, one of the largest payroll managers in the country, which does not include public employment data and whose figures tend to vary slightly with respect to those published by the US Government.
The country’s economy, in parallel, continues to suffer from a lack of workers, with a difference between jobs offered and labor available.
“Against the background of a tight labor market and high inflation, monthly job gains are closer to pre-pandemic levels”said ADP Chief Economist Nela Richardson.
The manager is concerned, however, about the situation of small businesses (with up to 49 workers), which have lost 91,000 jobs this month.
The losses are offset by an increase in employment in medium-sized companies (up to 499 workers), which add 97,000 jobs, and in large ones (more than 500 workers), which add 122,000 new jobs.
The largest increase occurs in the service sectorwhere 104,000 jobs have been added, most of these in Health (41,000 new jobs).
The private employment growth figure published today is the lowest since the economic recovery began after the collapse in employment in April 2020 due to the covid-19 pandemic, not counting December 2020, when 123,000 jobs were lost.
The data matches a period of uncertainty due to the increase in inflationwith the Federal Reserve gradually raising interest rates to try to curb rising prices and fears that the world’s largest economy is headed for a recession.
The Administration of Joe Biden he usually takes pride in his economic management, citing the good data on the labor market and low unemployment, around 3.6%.
However, high inflation is taking its toll, as most Americans see rising prices as the biggest problem facing the US right now, according to a Pew Research Center study from May this year.
Biden has stated that curbing inflation is one of his biggest priorities right now.