ZINGER KEY POINTS
- U.S. private sector job creation in April exceeded forecasts, ADP Employment Report reveals.
- Private sector added 192,000 jobs, above the 175,000 predicted. Pace of job growth remained broadly steady during the month.
The rate of job creation in U.S. private sector businesses surpassed predictions in April, indicating continued strength in the employment landscape.
Private employers added 192,000 new jobs last month, slightly down from an upwardly revised 208,000 in March, surpassing the projected 175,000, according to the most recent ADP National Employment Report.
The ADP report offers an advance look at the Bureau of Labor Statistics’ upcoming April jobs report, slated for release this Friday. Economists anticipate a decline in non-farm payroll expansion, dropping from 303,000 in March to 243,000 in April. Projections indicate the unemployment rate will hold steady at 3.8%, with average hourly earnings predicted to marginally ease from a 4.1% year-over-year increase to 4%.
April’s ADP National Employment Report: Key Highlights
- Services-providing companies added 145,000 jobs, while goods producers 47,000.
- Industries experiencing notable increases in employment include leisure and hospitality (56,000), construction (35,000), trade, transportation, and utilities (26,000), education/health services (26,000), professional and business services (22,000) and financial activities (16,000). Information was the only industry experiencing a loss of 4,000 jobs.
- Wage growth flattened, with job-stayers seeing a 5.0% pay increase, as in March, while job changers experienced a 9.3% increase, slightly down from the 10% in March.
- “Hiring was broad-based in April. Only the information sector — telecommunications, media, and information technology — showed weakness, posting job losses and the smallest pace of pay gains since August 2021,” Nela Richardson, chief economist at ADP, said.
Market Reactions
The U.S. Dollar Index (DXY) held steady following the release.
Futures on U.S. equity indices fell during the premarket trading Wednesday, following the drops seen Tuesday. Contracts on the Nasdaq 100 and the S&P 500 were down by 0.3% and 0.5%, respectively, by 8:20 a.m. ET.
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Originally Posted May 1, 2024 – Private Employment Increases By 192,000, Beats Forecasts: ‘Hiring Was Broad-Based In April’
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