United States private sector hiring slows in April: payroll firm
- Author: Wendy Palmer May 04, 2017,
May 04, 2017, 22:44
But mere days after the April 5 ADP release, Washington's official non-farm payrolls account showed the US economy created just 98,000 new positions for the month.
But Moody's Analytics Chief Economist Mark Zandi, whose team was instrumental in bringing forth the ADP report, suggested there is no reason to fear the USA labor market. This was slightly above the 175K expected by analysts, although the March numbers were revised downward by 8K to 255K.
The ADP figures come ahead of the U.S. Labor Department's more comprehensive non-farm payrolls report on Friday, which includes both public and private-sector employment.
The report, which covers 411,000 firms and 24 million workers, comes before Friday's closely-watched USA employment data, although the two reports can diverge widely.
Ahu Yildirmaz, vice president of the ADP Research Institute, said despite the slower pace of hiring in the first quarter, "the growth is more than strong enough to accommodate the growing population as the labor market nears full employment".
The Roseland-based payroll and human resources company said overall USA nonfarm private employment grew at a slower pace than in the first quarter of the year.
Medium and small businesses led the increase, adding 78,000 and 61,000 jobs, respectively.
"The softness in construction is continued payback from outsized growth during the mild winter", he said in a statement. That report will likely show that employers added 185,000 jobs in April, predict. Brick-and-mortar retailers also cut jobs in response to stiff competition from online merchants like Amazon.
Construction hiring accelerated in the first two months of the year, when temperatures were warmer than usual, and has leveled off since then.
The unemployment rate is expected to have ticked up to 4.6 percent in April.
Construction employment decreased 2 000, the only industry to show a decline, after strong job gains in the prior three months.