The results fell well short of estimates.
The private sector added 62,000 jobs in April, marking a steep drop from March when 147,000 new jobs were added, according to the monthly ADP National Employment Report.
The April numbers were also well below what economists had expected, as the consensus called for 120,000 new jobs in April.
“Unease is the word of the day,” Dr. Nela Richardson, chief economist, ADP, said. “Employers are trying to reconcile policy and consumer uncertainty with a run of mostly positive economic data. It can be difficult to make hiring decisions in such an environment.”
Which industries were hiring?
Goods producing employers only added 26,000 jobs in April, led by construction, which accounted for 16,000 of them. Manufacturing added just 4,000 jobs while natural resources/mining created 6,000.
In the services sector, 34,000 new positions were created with leisure and hospitality accounting for 27,000 of them. With the trade/transportation/utilities, 21,000 jobs were added, while financial companies created 20,000 new jobs in April.
On the other hand, education and health services lost 23,000 jobs, while information shed 8,000 positions. In addition, professional and business services lost 2,000 jobs.
In terms of regions, the Midwest added 42,000 jobs in April, followed by the Northeast with 10,000 and the West with 9,000. The South produced only 3,000 new positions.
Further, large companies with more than 500 employees added only 12,000 jobs, while mid-sized firms produced 40,000. Small companies with less than 50 employees added 11,000 jobs.
Pay jumps 4.5%
The pay rates for those workers staying in their jobs increased 4.5% for the month, a slight deceleration from 4.6% in March. Financial services workers saw a 5.1% jump in pay, while construction, leisure/hospitality and education/health services each saw their pay rates increase 4.7%.
Pay rates for job changers increased 6.9% in April, up from 6.7% in March.
The March ADP job totals were revised from 155,000 to 147,000.
The federal unemployment report, which includes government jobs, comes out this Friday, May 2.
