ADP's Employment Report Sees Fewer Jobs Added in April
- ADP Employment reported smaller-than-expected increase in April’s Job data
- Small businesses added more jobs in April compared to March
- Manufacturing and goods producing companies saw the largest job losses
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April’s Automatic Data Processing (ADP) employment report showed fewer jobs added to the economy compared to the previous month, at 156,000 versus 195,000 expected. Most notably, the sharpest deceleration in hiring was seen in midsized companies, which reported an increase of 39,000 jobs in April compared to 75,000 in March. Despite the slowdown, small businesses added more jobs in April than the previous month, at 93,000. Sector based changes included the loss of -11,000 jobs in the goods producing sector as well as -13,000 in manufacturing.
This month’s ADP report has shown the fewest jobs added to the economy since April 2013. A slowdown in hiring could potentially be of concern to the Federal Reserve, as ‘full’ employment is a key goals with regards to the tightening goals of monetary policy. That said, the ADP data has reported net payroll growth every month since January 2010 and the 6-month average for the series remains buoyant at 205,000. Further aspects of labor health though have generated unease. Fed Chairman Yellen has made it clear in multiple statements that the central bank would like to see a rise in wages and continued growth in the jobs market. The markets were little moved by the data as traders are more likely to be anticipating the release of this Friday’s NFP report.