US private sector adds fewer jobs than expected in April
By Michele Maatouk
Date: Wednesday 04 May 2022
(Sharecast News) - Private sector employment in the US rose less than expected in April, according to the latest data from ADP.
Employment increased by 247,000 from March, versus expectations for a 390,000 jump. Meanwhile, the total of jobs added in March was revised from 455,000 to 479,000.
Small businesses with fewer than 50 employees lost 120,000 jobs, while medium businesses with between 50 and 499 employees added 46,000. Large businesses with more than 500 employees added 321,000 jobs.
The services sector created 202,000 jobs, while the goods-producing sector saw a 46,000 increase. Within services, leisure and hospitality saw the biggest jump at 77,000.
Nela Richardson, chief economist at ADP, said: "In April, the labour market recovery showed signs of slowing as the economy approaches full employment.
"While hiring demand remains strong, labour supply shortages caused job gains to soften for both goods producers and services providers. As the labour market tightens, small companies, with fewer than 50 employees, struggle with competition for wages amid increased costs."
Ian Shepherdson, chief economist at Pantheon Macroeconomics, said: "This is just a model-driven payroll forecast, with a very patchy record, as the chart shows. ADP talk about how they incorporate data from firms which use their payroll processing services, but that's not the core of their model, which also includes regular macro data and the lagged official payroll numbers.
"ADP's estimate is not statistically significant when incorporated into a payroll model using the Homebase numbers, so we aren't changing our 300K forecast for Friday's official headline reading."
Special promo:
Trading the Forex Market? Visit FXmania.com to get advanced infomation about currencies and the Foreign Exchange
Market.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN