12:46 PM EDT, 06/04/2025 (MT Newswires) -- US private sector employment last month grew at the slowest pace since March 2023, Automatic Data Processing ( ADP ) reported Wednesday, prompting President Donald Trump to again urge the Federal Reserve to ease monetary policy.

Private employment rose by 37,000 jobs in May, ADP's data showed. That was well short of the 114,000 level expected in a survey compiled by Bloomberg. Job gains for April were revised down to 60,000 from 62,000.

"After a strong start to the year, hiring is losing momentum," ADP Chief Economist Nela Richardson said in a statement. "Pay growth, however, was little changed in May, holding at robust levels for both job-stayers and job-changers."

Responding to the ADP report, Trump said that Fed Chair Jerome Powell "must" lower interest rates immediately. "Too late," Trump said in a social media post. Since taking office, Trump has repeatedly called on Powell to cut rates. Last month, the Fed left its benchmark lending rate unchanged for a third straight meeting, saying that upside risks to inflation and unemployment had increased.

The Bureau of Labor Statistics is expected to report Friday that the US economy added 130,000 nonfarm jobs in May, which would mark a drop from a 177,000 increase reported the month prior, according to a Bloomberg poll.

Annual wage growth for job stayers was "little changed" at 4.5% in May, ADP said Wednesday. Pay gains for job changers advanced 7%, unchanged from April's revised rate, according to the report.

Service-related industries added 36,000 jobs last month, led by a 38,000 jump in the leisure and hospitality sector, but offset by losses in trade, transportation and utilities, professional and business services, and education and health services. The goods-producing sector lost 2,000 jobs amid declines in the manufacturing and natural resources and mining sectors.

Medium businesses added 49,000 jobs, while small and large establishments recorded losses of 13,000 and 3,000 positions, respectively, ADP said.

On Tuesday, Fed Governor Lisa Cook said that while the US labor market remains resilient, trade policy changes could affect hiring plans. Separately, official data showed that job openings in the US unexpectedly increase in April, while layoffs picked up.

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