Hiring Among US Employers Slowed in April -- ADP
May 04 2022 - 09:00AM
Dow Jones News
By Xavier Fontdegloria
U.S. private-sector hiring lost pace in April, in a sign of
continued tightening in the country's labor market amid persistent
worker shortages.
Employment in the nonfarm private sector increased by 247,000 in
April, data from the ADP National Employment Report showed
Wednesday. The reading is below the revised 479,000 increase
registered in March and misses the 390,000 consensus forecast in a
poll by The Wall Street Journal.
"In April, the labor market recovery showed signs of slowing as
the economy approaches full employment," said Nela Richardson,
chief economist at ADP. "While hiring demand remains strong, labor
supply shortages caused job gains to soften for both goods
producers and services providers," she said.
Large businesses, those with at least 500 workers, added 321,000
jobs; while medium-sized businesses, of between 50 and 499
employees, created 46,000 jobs. However, small businesses, between
one and 49 employees, shed 120,000 jobs.
"As the labor market tightens, small companies, with fewer than
50 employees, struggle with competition for wages amid increased
costs," Ms. Richardson said.
By sector, services providers registered a gain of 202,000 jobs,
with leisure and hospitality adding 77,000 jobs. The
goods-producing sector created 46,000 jobs, the data showed.
The report, carried out by the ADP Research Institute along with
Moody's Analytics, is based on data through the 12th of the
month.
The U.S. Department of Labor is expected to release its
employment report for April, which covers the same period as the
ADP National Employment Report, on Friday. Economists polled by The
Wall Street Journal are expecting it to show nonfarm payrolls up by
400,000, while the unemployment is seen falling to 3.5%. The ADP
series can diverge considerably from the Labor Department's
official data.
Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com
(END) Dow Jones Newswires
May 04, 2022 08:45 ET (12:45 GMT)
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