Private-sector hiring hit a two-year low in May, with just 37,000 jobs added, according to ADP. Economists expected 130,000, showing a sharp slowdown from April’s 60,000. Uncertainty from tariffs and trade policies has employers holding back. Nela Richardson, ADP’s chief economist, noted a “hiring hesitancy” rather than a collapsing labor market. This cautious approach reflects broader economic concerns.
President Trump’s tariff policies have created a ripple effect. Businesses face higher input costs and unpredictable trade rules, making them wary of expanding payrolls. Job openings rose in April, but the rate of workers quitting stayed near historic lows. This suggests employees are sticking with stable jobs rather than risking moves. The upcoming May jobs report from the Bureau of Labor Statistics will shed more light on these trends.
Recent college graduates face tough times. Unemployment for young workers is higher than the national average, a shift not seen in decades. AI is replacing some entry-level roles, and tariff-related economic fears aren’t helping. Oxford Economics’ Matthew Martin called it a “perfect storm” for grads, with fewer jobs to compete for. This trend could reshape how new workers enter the job market.
The labor market remains resilient but fragile. Economists predict 125,000 jobs added in May, down from April. If tariffs ease, hiring could pick up. For now, businesses are playing it safe, and job seekers, especially young ones, need to adapt. Upskilling in high-demand fields like AI could be a smart move.