US private sector hiring slows more than expected in April
By Michele Maatouk
Date: Wednesday 03 May 2017
(ShareCast News) - Private sector employment in the US slowed more than expected in April, according to data released by ADP on Wednesday.
Employers added 177,000 jobs versus expectations for a 180,000 increase. Meanwhile, the March figure was revised down to 255,000 from 263,000.
Small businesses with fewer than 50 employees added 61,000 jobs, while medium businesses with between 50 and 499 employees added 78,000.
Large companies with 500 or more employees added 38,000 jobs in April.
The goods-producing sector saw an increase of 12,000 jobs, while the services sector added 165,000 positions.
Mark Zandi, chief economist at Moody's Analytics, said: "Job growth slowed in April due to a pullback in construction and retail jobs. The softness in construction is continued payback from outsized growth during the mild winter. Brick-and-mortar retailers cut jobs in response to withering competition from online merchants."
Capital Economics said the more modest increase in April is not a complete surprise, since the calculation incorporates recent changes in the official non-farm payroll employment series, which in this case means the disappointing 98,000 gain in March.
"What was a surprise is that the ADP only revised its own estimate of the gain in March down trivially from 263,000 to 255,000, leaving it still a long way from the official out-turn.
"Admittedly, that 177,000 gain represents a six-month low for the ADP series. But, with the unemployment rate down to only 4.5%, there is no way that employment could continue to expand at in excess of 200,000 per month. 177,000 is still enough to keep the unemployment rate on a downward trend."
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