"If anything, the trend appears to be up, not down", High Frequency Economics Chief U.S. Economist Jim O'Sullivan wrote in a research note.Last week, the government said gross domestic product increased 0.7 percent in the first quarter, the weakest pace in three years.Payrolls processor ADP said on Wednesday private employers added 177,000 jobs last month.
The report's release comes after other recent signs the economy has slowed. March's figure was revised down to 255,000. That would be in line with the latest ADP data and a significant improvement over the disappointing 98,000 net new jobs the Labor Department reported for March. This is a "steady as she goes" number, suggesting low volatility in the US labor market which came into question directly following the March government jobs report.
This report suggests Friday's non-farm payrolls report, released by the government, could alsocome in close to expectations.
In terms of size of the business that added jobs, medium businesses have added 78,000 jobs in April while small businesses created 61,000 jobs for the Americans.
Most of the hiring was in services businesses, such as health care, restaurants, hotels, and shipping.
"The softness in construction is continued payback from outsized growth during the mild winter", he said in a statement.
"Looking across company sizes, midsized businesses showed persistent growth for the past six months", Yildirmaz said. Construction hiring accelerated in the first two months of the year, when the weather was warmer than usual, and has leveled off since then. Brick-and-mortar retailers also cut jobs in response to stiff competition from online merchants like Amazon. Manufacturing added 11,000 jobs while construction lost 2,000 jobs.
Economists polled by Econoday had forecast an April gain in ADP employment of 170,000, compared with an originally reported increase of 263,000 for March.
With economic and job growth slowing, Fed officials are expected to hold the rate steady when they announce their decision Wednesday. But, with the unemployment rate down to only 4.5%, there is no way that employment could continue to expand at in excess of 200,000 per month.