A job seeker attends the Veterans Employment and Resource Expo on Tuesday, January 9, 2024, in Long Beach, California.
Eric Thayer | Bloomberg | Getty Images
ADP data showed that private employment grew faster than expected in April, indicating that the U.S. labor market still has sufficient momentum.
The payroll processing company reported Wednesday that companies added 192,000 workers this month, beating the Dow Jones average estimate of 183,000 but down slightly from March’s upwardly revised 208,000.
Meanwhile, the company’s wage gauge showed workers’ wages were up 5% from a year ago, a multi-year low that provided some welcome news amid multiple other signs that inflation is proving to be slower than in many economies. The expectations of scientists and policymakers are more flexible.
“Hiring was broad-based in April,” said Nela Richardson, chief economist at ADP. “Only the information industry – telecommunications, media and information technology – was weak, with job losses and the lowest wage growth since August 2021. “
Employment growth was strongest in the leisure and hotel industry, which added 56,000 jobs. Other industries showing growth included construction (35,000 jobs) and trade, transport and utilities and education and health services, both of which added 26,000 jobs.
Professional and business services contributed $22,000, while financial activities added $16,000.
Companies with 500 or more employees saw the largest increase in hiring, reaching 98,000.
The ADP release comes two days ahead of the more closely watched non-farm payrolls report. ADP’s numbers have been lower than those from the Labor Department in recent months, although March’s numbers were fairly close.The department’s Bureau of Labor Statistics reports that Private employment increased by 232,000 this month while ADP was 208,000.
Friday’s report expects nonfarm payrolls to increase by 204,000 in April, down from 303,000 in March, according to Dow Jones consensus forecasts.
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