Small companies reduced hiring in April, adding 61000 jobs
- Author: Rita Burton May 04, 2017,
May 04, 2017, 22:40
Companies added workers to United States payrolls at a steady pace in April with increases across industries, data from the ADP Research Institute in Roseland, New Jersey, showed Wednesday.
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 US labor market. But that was a sharp decline from a downwardly revised 255,000 the previous month and the fewest since October. Last month, the government said employers added only 98,000 jobs, far below the robust hiring in ADP's report.
Economists use ADP's data to get a feeling for the Labor Department's employment report, which will be released Friday. This suggests that there will surely be greater hesitation to trade any influence on the official BLS data ahead of the FOMC statement.
"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", said Ahu Yildirmaz, co-head of the ADP Research Institute. ADP, a human resources management company, is based in Roseland, N.J.More news: Blackhawks Trade Scott Darling To Hurricanes For 3rd-Round Pick
Medium-sized and small businesses made up more than two-thirds of the new jobs created, compared with large (+500 employees) businesses. The softness in construction is continued payback from outsized growth during the mild winter.
Financial and business services led the way, with 72,000 jobs added, while education and health services added 41,000 jobs.
Economists surveyed by Reuters had expected the April count to be 175,000. Those businesses had added 44,000 net new jobs in March and a total of 154,000 in the first three months of the year as unusually warm weather allowed spring projects to begin early. 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. Manufacturing added 11,000 jobs, a modest gain, while construction firms cut 2,000 positions.