Job Growth Falls Below Expectations, ADP Shows
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The private sector jobs market may not be as healthy as recent signs would suggest after the ADP National Employment Report came in sharply below expectations.
ADP showed that the private sector added just 113,000 jobs in April, which was below the 175,000 analysts were expecting. In addition, March's number was adjusted down from the initial estimate of 209,000 to a revised estimate of 201,000.
Small businesses added 58,000 jobs, medium businesses added 57,000 and Large businesses added 4,000.
The goods producing sector lost 4,000 jobs in the month while the service-providing sector added 123,000.
According to Joel Prakken, Chairman of Macroeconomic Advisers, LLC, "While April's increase was the twenty-seventh consecutive monthly advance, it nonetheless reflected a deceleration in the recent pace of hiring. This deceleration seems consistent with other incoming data, including a disappointingly weak report on first-quarter Gross Domestic Product, a recent back-up in initial unemployment claims, and last month's relatively weak reading on establishment employment reported by the Bureau of Labor Statistics."
Prakken added: "There is some evidence that unusually warm weather boosted employment during the winter months, with a 'payback' now coming due. The modest rise in private employment suggests that the national unemployment rate probably did not decline in April unless there was a notable decline in the labor force."
Today's ADP report comes ahead of Friday's all-important non-farm payroll report from the government. Economists are currently expecting 161,000 jobs to be created in the month. Although, today's report could lead to some downside revisions.
ADP showed that the private sector added just 113,000 jobs in April, which was below the 175,000 analysts were expecting. In addition, March's number was adjusted down from the initial estimate of 209,000 to a revised estimate of 201,000.
Small businesses added 58,000 jobs, medium businesses added 57,000 and Large businesses added 4,000.
The goods producing sector lost 4,000 jobs in the month while the service-providing sector added 123,000.
According to Joel Prakken, Chairman of Macroeconomic Advisers, LLC, "While April's increase was the twenty-seventh consecutive monthly advance, it nonetheless reflected a deceleration in the recent pace of hiring. This deceleration seems consistent with other incoming data, including a disappointingly weak report on first-quarter Gross Domestic Product, a recent back-up in initial unemployment claims, and last month's relatively weak reading on establishment employment reported by the Bureau of Labor Statistics."
Prakken added: "There is some evidence that unusually warm weather boosted employment during the winter months, with a 'payback' now coming due. The modest rise in private employment suggests that the national unemployment rate probably did not decline in April unless there was a notable decline in the labor force."
Today's ADP report comes ahead of Friday's all-important non-farm payroll report from the government. Economists are currently expecting 161,000 jobs to be created in the month. Although, today's report could lead to some downside revisions.
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