The United States private sector added more jobs than expected in April as the health services industry continued its gains, though medium-sized companies lagged.
Private sector employment rose by 109,000, according to the ADP National Employment Report. This is above Reuters-polled economists’ estimate of 99,000, and exceeds March’s increase of 61,000.
“Small and large employers are hiring, but we're seeing softness in the middle,” said ADP chief economist Nela Richardson.
“Large companies have resources to deploy, and small ones are the most nimble, both important advantages in a complex labour environment.”
Businesses with fewer than 50 employees added 65,000 jobs, while those with more than 500 employees added 42,000. Medium-sized businesses increased employment by just 2,000 jobs.
Health services and education led gains with 61,000 new jobs last month, by far the most of any sector. It had added 58,000 jobs in both March and February.
Trade, transportation, and utilities added 25,000 jobs, rebounding from a 58,000 decrease in March. Service-providing industries grew by 94,000 jobs, while goods-producing industries grew by 15,000.
The West saw the largest job increases of any region at 46,000, while the Midwest added the fewest jobs at 11,000.
Pay for workers remaining in their jobs rose by an average of 4.4% in April, slowing slightly from the 4.5% seen in March. Pay growth for job-changers was unchanged at 6.6%.
The Bureau of Labor Statistics’ April nonfarm payrolls report, which includes government employment as well as the private sector, will be released on Friday (Saturday AEST). Reuters-polled economists have predicted an increase of 62,000.
The Federal Reserve held interest rates steady last week at 3.50-3.75%, though the Federal Open Market Committee’s votes were split 8-4. Traders project a 93.9% chance the Fed will also keep rates unchanged at its next meeting in June, per CME FedWatch.
