US Job Growth Slows to Two-Year Low Amidst Surge in Unemployment Claims

The US labor market showed signs of significant slowdown in May 2025, according to a report by payroll company ADP. The report revealed that private-sector firms added only 37,000 jobs, marking the lowest monthly total in over two years. This figure is considerably lower than the 60,000 jobs added in April and falls significantly below economists' expectations of around 130,000. The weak numbers indicate a potential labor market contraction, although experts don't necessarily believe the market is collapsing. Adding to the economic uncertainty, initial jobless claims spiked, with 247,000 Americans filing for unemployment benefits in one week. This represents an increase of over 8,000 claims compared to the previous weeks. "The weak numbers we're seeing now does not point to a labor market that's collapsing, but there is hiring hesitancy," said Nela Richardson, chief economist at ADP. The situation is impacting young people entering the workforce. One parent shared, "My two 17-year-olds have applied to dozens of places, from fast-food restaurants to grocery stores, with no luck. They can't even get a call back."