U.S companies Adds 177,000 Jobs to Payrolls in April -ADP

• U.S companies Adds 177,000 Jobs to Payrolls in April

Companies added workers to U.S. payrolls at a steady pace in April with increases across industries, data from the ADP Research Institute in Roseland, New Jersey, showed Wednesday.

Key Points

• Private payrolls climbed by 177,000 (forecast was 175,000) after a 255,000 gain in March that was revised from initial reading of 263,000
• Goods-producing industries boosted headcounts by 12,000
• Service providers increased payrolls by 165,000

Big Picture

The private group’s data on company hiring adds some color to Federal Reserve officials’ discussions on the labor market Wednesday as they close out their two-day meeting in Washington. A strengthening labor market is pushing central bankers to proceed with further interest-rate increases this year as they also work to pare the Fed’s $4.5 trillion balance sheet. The ADP figures have shown a spotty relationship with the government’s monthly payrolls tallies, particularly in March when the group’s reading was almost triple the Labor Department’s gain in private employment.

Economist Takeaways

“Despite a dip in job creation, the growth is more than strong enough to accommodate the growing population as the labor market nears full employment,” Ahu Yildirmaz, co-head of the ADP Research Institute. “Looking across company sizes, midsized businesses showed persistent growth for the past six months.”

Other Details

• Hiring in manufacturing rose by 11,000 following a 31,000 increase
• Business services added 72,000 jobs in April, the most in three years
• Companies employing 500 or more workers added 38,000 to staff; payrolls rose by 78,000 at medium-sized businesses, or those with 50 to 499 employees; small companies boosted staffs by 61,000
• Construction employment decreased 2,000, the only industry to show a decline, after strong job gains in the prior three months