Private sector payrolls increased by 247,000 in April, ADP said in its closely watched monthly report on Wednesday. This comes after an increase of 479,000 private payrolls in March, according to ADP’s revised monthly print. Consensus economists were looking for a 383,000 increase in private payrolls, according to data from Bloomberg.
The US services sector saw the biggest gains in private payrolls last month, with nearly every industry group adding back jobs. However, job growth remained slower than in March, contributing to the headline slowdown in total private payroll gains.
Leisure and hospitality employers added 77,000 jobs back in April, still the most of any industry group, with less than half the payroll from March. It was followed by professional and vocational services, with payrolls increasing by 50,000 in April, and education and health services with gains of 48,000. In the goods-producing sector, payroll grew net in each of the construction, construction and mining industries.
Also, depending on the size of the company, small businesses saw a significant drop in employment last month. Small businesses, or those with 49 employees or fewer, shed a total of 120,000 payrolls last month, while medium and large businesses gained 46,000 and 321,000, respectively.
ADP’s monthly private jobs report comes, as usual, two days before the Labor Department releases its official jobs report. While ADP reports generally do not serve as an ideal indicator of what to expect in government-released figures due to differences in survey methodology, print has often provided a direction for job growth that occurred over a given period. has helped.
Despite these discrepancies, the underlying trend has become clear amid the plethora of recent labor market data: the US labor market remains extremely tight, with demand for workers far outweighing supply. In March, job openings hit a record high of more than 11.5 million, while new employees turned up little at 6.7 million. And these vacancies remain even after months of payroll growth coming in well above pre-pandemic trends.
“For households, the job growth trend is significant,” Rubila Farooqui, chief US economist for High Frequency Economics, wrote in a note. “Recent labor market data suggests conditions are tight and showing no signs of declining. Layoffs near 50-year lows.”
“Rising marginal wages are supporting demand, enabling businesses to successfully pass on higher input and labor costs without much pushback from consumers,” he said. “But we are watching for signs of a pullback, as rates move higher and prices remain high, or even continue to rise. This will not only affect the trajectory for growth, it will affect the companies’ growth potential.” Will also limit the ability to maintain margins and profitability, which will impact turn investment and hiring decisions.”
In a jobs report released by Friday’s government, consensus economists are looking for non-farm payrolls to rise net for April to 385,000, with private payrolls slightly stronger at 390,000 overall. This would follow a non-farm payroll increase of 431,000 in March. And the unemployment rate is expected to improve further and reach 3.5%, which corresponds to the February 2020 low level since 1969.
This post is breaking. Check back for updates.
Emily McCormick is a reporter for Yahoo Finance. Follow him on Twitter: @emily_mcck
Read the latest financial and business news from Yahoo Finance
follow yahoo finance Twitter, Facebook, instagram, menu, linkedin, youtubeAnd reddit