By Kristin Myers, Editor-in-Chief

What's Happening Today

Private payrolls (the number of jobs in the private sector) increased by 128,000 in May, the lowest increase since the start of the pandemic in March 2020. This is also the third straight month that the pace of private sector hiring has declined, according to the latest employment report from payroll provider ADP. Economists had been expecting private payrolls to jump more than double that amount.

The labor market remains tight as the number of available jobs far outweighs the number of available workers. The ADP figures come just a day before the Labor Department's May jobs report is set to be released, amid concerns about a potential slowdown in the U.S. economy. ADP's numbers already signal some weakness in hiring by American businesses.

In a sign that the labor market continues to remain strong (for now), the number of people filing for unemployment for the first time dropped by 11,000 to 200,000 claims last week. Those numbers have been on the rise since April, but remain close to pre-pandemic levels.

The state of the jobs market will be watched closely as the Federal Reserve maintains that the U.S. economy can sustain rate hikes while the labor market stays strong. But if that starts to falter, it could not only help add to concerns about the potential risk of a recession, but also the possibility of stagflation (high levels of inflation), a weak jobs market, and slow economic growth.

- Kristin

Editors' Picks

Private Sector Hiring Slows, Jobless Claims Stay Low (The Balance)

Economic Scorecard: Biggest Numbers May Not Be Best, for Now (The New York Times)

Economist: Consumers Are 'Prioritizing Travel-Based Spending' Despite Inflation (Yahoo Finance)

High Gas Prices Turn Off Motorists, Driving Down Demand (The Balance)

Waiter, There's a Fee in My Soup (The Wall Street Journal)

Equal Mental Health Insurance Coverage Elusive Despite Legal Guarantee (The Washington Post)

Can I Invest in Stocks With a Home Equity Loan? (The Balance)

How To Calculate Monthly Interest (The Balance)

Off the Charts

Demand for gas is down as the summer driving season kicks off, likely due to drivers bypassing high prices at the pump, according to recent data from the Energy Information Administration (EIA).