Employers added 109,000 jobs in April in the second report this week that suggests the labor market may be improving, private payroll firm ADP said on Wednesday.
The gain in the ADP Employment Report follows a slightly revised March increase of 61,000, paced by small and large employers. Sectors where payrolls rose included education and healthcare, with gains of 61,000; and trade, transportation and utilities, where 25,000 workers were hired.
"Small and large employers are hiring, but we're seeing softness in the middle,” Nela Richardson, chief economist at ADP, wrote in an analysis. “Large companies have resources to deploy, and small ones are the most nimble, both important advantages in a complex labor environment.”
“The headline numbers may look steady, but the real shift is underneath,” Christine Belmonte, president of technology staffing at The Planet Group, wrote. “Hiring is more focused, more measured, and tied much more closely to business outcomes.”
The main event for the labor market will be the government’s release of the April jobs numbers. Expectations are for a gain of around 57,000, following March’s surprising gain of 178,000. Unlike ADP, the Bureau of Labor Statistics survey includes government hiring.
“With earnings momentum expected to continue into subsequent quarters, we continue to see a strong probability that the U.S. economy can grow at or above trend this year, notwithstanding the geopolitical headwinds,” BeiChen Lin, senior investment strategist at Russell Investments, wrote.
“In March, we saw tentative signs that job creation was beginning to broaden out beyond just the defensive sectors. We’ll be looking to this April report to see if it’s an emerging trend versus a one-off.”
The strong performances so far will do little to change the Federal Reserve’s posture on interest rates. The Fed is currently on pause as the central bank watches the conflict in Iran. President Donald Trump on Tuesday abruptly paused the U.S. attempt to help ships transit the narrow Strait of Hormuz, as reports surfaced the two sides were making progress in negotiations to end hostilities that began in late February.
Oil prices receded somewhat Tuesday but are still elevated, with global oil markets pricing a barrel of oil at $103 a barrel. The national average price of a gallon of gas has surpassed $4.50.
Dow Jones Industrial Average futures, meanwhile, surged by more than 300 points in premarket trading Wednesday morning as oil dipped and hopes rose for a resolution of the Middle East conflict.
The ADP survey follows Tuesday’s report from the Bureau of Labor Statistics that showed job openings held steady in March while hiring picked up.
By Tim Smart |
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