USA: private job creations well below expectations in April

The business services company ADP announces 247,000 new jobs in the private sector, while analysts had forecast 390,000 jobs.

Private sector companies in the United States created 247,000 jobs in April, a figure well below analysts’ expectations of 390,000 and a sign of difficulties in recruiting new employees.

This lower-than-expected figure is mainly explained by the loss of 120,000 jobs in small businesses, which hire between 1 and 49 employees, according to the monthly survey by the business services company ADP published on Wednesday.

“The labor market recovery showed signs of slowing in April as the economy approached full employment,” Nela Richardson, ADP’s chief economist, said in a statement.

The unemployment rate in the United States fell in March to 3.6%, approaching its pre-pandemic level when it was at its lowest in half a century. The April figure will be released Friday by the Labor Department and is expected to remain flat, according to Briefing estimates. Analysts also expect 395,000 job creations in April against 431,000 in March.

“Although the demand for hiring remains strong, labor shortages have led to a moderation in the pace of job creation for both manufacturers of goods and service providers,” added Ms. Richardson.

In detail, companies in the service sector created 202,000 jobs last month. Goods-producing companies created 46,000 (due to rounding, the sum is higher than the total figure of 247,000).

The biggest job creations were in hospitality and leisure (77,000), professional and business services (50,000) and education and health services (48,000).

Medium-sized companies (50 to 499 employees) and large companies (500 or more employees) partly compensated for the job losses observed for small companies by creating 46,000 and 321,000 new positions respectively.

Data for March have also been revised upwards. ADP now estimates that 479,000 private jobs were created during this month, against 455,000 initially calculated.

Leave a Comment