Companies Boost Payrolls by 177,000 in April, ADP Says
Companies added workers to U.S. payrolls at a steady pace in April with increases across industries, data from the ADP Research Institute in Roseland, N.J., showed May 3.
Key Points
• Private payrolls climbed by 177,000 (forecast was 175,000) after a 255,000 gain in March that was revised from initial reading of 263,000.
• Goods-producing industries boosted headcounts by 12,000.
• Service providers increased payrolls by 165,000.
Big Picture
The private group’s data on company hiring adds some color to Federal Reserve officials’ discussions on the labor market May 3 as they close out their two-day meeting in Washington. A strengthening labor market is pushing central bankers to proceed with further interest-rate increases this year as they also work to pare the Fed’s $4.5 trillion balance sheet.
The ADP figures have shown a spotty relationship with the government’s monthly payrolls tallies, particularly in March when the group’s reading was almost triple the Labor Department’s gain in private employment.
Economist Takeaways
“Despite a dip in job creation, the growth is more than strong enough to accommodate the growing population as the labor market nears full employment,” Ahu Yildirmaz, co-head of the ADP Research Institute. “Looking across company sizes, midsize businesses showed persistent growth for the past six months.”
Other Details
• Hiring in manufacturing rose by 11,000 following a 31,000 increase.
• Business services added 72,000 jobs in April, the most in three years.
• Companies employing 500 or more workers added 38,000 to staff; payrolls rose by 78,000 at medium-size businesses, or those with 50 to 499 employees; small companies boosted staffs by 61,000.
• Construction employment decreased 2,000, the only industry to show a decline, after strong job gains in the prior three months.
