U.S. Private Sector Job Creation Accelerated Further in April -- ADP
05 May 2021 - 11:03PM
Dow Jones News
By Xavier Fontdegloria
The nonfarm private sector in the U.S. continued on its upward
hiring trend in April, posting the strongest jobs gain since
September 2020 on the back of the reopening of the economy.
Total U.S. nonfarm private employment rose by 742,000 in April,
data from ADP National Employment Report showed Wednesday.
Economists polled by The Wall Street Journal were expecting
payrolls to rise by a higher 800,000.
In March, the U.S. private sector gained 565,000 jobs, up from
an initial estimate of 517,000.
"The labor market continues an upward trend of acceleration and
growth," said Nela Richardson, chief economist at ADP.
Payroll growth is set to surge over the next few months as
millions of people are hired back into the hospitality, travel and
retail sectors, economists say.
"Service providers have the most to gain as the economy reopens,
recovers and resumes normal activities and are leading job growth
in April," Ms. Richardson said
Job creation was widespread in April. Large businesses, those of
at least 500 workers, created 277,000 jobs. Small businesses, with
a maximum of 49 employees, registered 235,000 payroll gains and
medium businesses, between 50 and 499 employees, added 230,000
jobs.
The service-providing sector created 636,000 jobs, particularly
in the leisure and hospitality sector, which was hard-hit by the
pandemic restrictions and added 237,000 jobs.
The goods-producing sector gained 106,000 payrolls, the data
showed.
"While payrolls are still more than eight million jobs short of
pre-Covid-19 levels, job gains have totaled 1.3 million in the last
two months after adding only about one million jobs over the course
of the previous five months," Ms. Richardson said.
The report, carried out by the ADP Research Institute along with
Moody's Analytics, is based on data through the 12th of the
month.
The U.S. Department of Labor is expected to release its April
employment report, which covers the same period as the ADP National
Employment Report, on Friday. Economists are expecting it to show
nonfarm payrolls up by one million for the month and the
unemployment rate down to 5.8%. The ADP series can diverge
considerably from the Labor Department's data on a monthly
basis.
Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com
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(END) Dow Jones Newswires
May 05, 2021 08:48 ET (12:48 GMT)
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