Hiring at small sized companies with less than 50 employees and for large corporations having over 500 people was down. Meanwhile, a section of midsize companies with fewer than 250 employees recorded an uptick in hiring.
Private sector hiring in mining, manufacturing, transportation, professional services, and education and health services decreased in May. However, construction, financial activity, information, leisure and hospitality, and other services sectors saw positive hiring during the period.In his
post on social media, Trump remarked that Powell’s rate cut announcement is already “too late” in the context of the ADP hiring data.Trump further compared the interest rates scenario with their counterpart across the Atlantic and commented, “Europe has lowered nine times”.
“After a strong start to the year, hiring is losing momentum. Pay growth, however, was little changed in May, holding at robust levels for both job-stayers and job-changers,” Nela Richardson, Chief Economist, ADP said.
Not the first time
The US President has on previous occasions assailed Powell on the topic of interest rates. After Trump’s first meeting with the Fed Chair on May 29, the Federal Reserve stated that the two discussed the economy, but not Powell’s outlook for interest rates.
The argument put forward in favour of the rate cut by Trump is that there is “no inflation” and so Powell should cut rates, though such a move might not necessarily reduce the borrowing costs consumers face.
