WASHINGTON (AP) — A private survey shows U.S. businesses added jobs at a sluggish pace in May, an indication that hiring may cooling off.
Payroll provider ADP says companies added 135,000 jobs in May. That's higher than April's revised total of 113,000. But it's much lower than the gains ADP reported over the winter, which averaged more than 200,000 a month from November through February.
Mark Zandi, chief economist at Moody's Analytics, blamed the slowdown on higher taxes and steep government spending cuts enacted this year.
The ADP report is derived from payroll data and tracks private employment. It has diverged at times from the government's more comprehensive monthly jobs report, which will be released Friday. In April, the government said private employers added 176,000 jobs, much higher than the ADP's estimate.