(DailyVantage.com) – It’s bad news again for President Joe Biden’s “Bidenomics” – payroll and jobs research firm ADP reported that the U.S. employment is slowing down, with new hires by private companies dipping to a new yearly low in May.
According to data collected for the month of May, private firms collectively boosted their manpower by 152,000 jobs for the month, which is the lowest the figure has been for the year so far. In contrast, the average for new jobs over the past year sits at 194,000, while the economic forecast for new jobs for May stood at 175,000. Breaking the figure down further, new hires by larger firms with more than 500 people on their payroll was around even 98,000, while mid-sized companies – firms that employ anywhere from 50 to 499 workers – saw an increase of new hires of 79,000 for the same month, compared to 59,000 in April.
The report also indicated that salary jumps for people switching positions and jobs in May were largely moderate for the second consecutive month, standing at 7.8%. In comparison, the figure rose as high as more than 16% two years ago.
However, for the education, leisure, and hospitality industries, the report indicated a 5.5% above-average wage increase for individuals who opted to stay in their jobs.
Wage growth is particularly important given that inflation in the U.S. is still rearing its ugly head for many. The Federal Reserve’s target of keeping the inflation rate at 2% will rely heavily on how much firms pay their employees.
Government data on job openings also seem to support the slow downward trend in job availability, with the Bureau of Labor Statistics’ latest Job Openings and Labor Turnover Survey showing 8.06 million job openings posted for April, lower than economists’ estimates of 8.36 million job openings for the same period, as well as the previous period’s figure of 8.4 million.
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