U.S. businesses added more jobs than forecast in April, posting the largest gain in 15 months in a sign the labor market may be slowly thawing despite broader economic pressures from inflation and energy prices.
“Small and large employers are hiring, but we’re seeing softness in the middle,” said Nela Richardson, chief economist at ADP, the U.S.’s largest processor of company payrolls.
Private payrolls rose by 109,000 last month, according to the ADP National Employment Report released Wednesday. The figure for March was revised lower to a 62,000 gain. The April number topped the 84,000 increase that Wall Street forecasters had predicted. The hiring advance was led by gains in health services, education, trade, transportation and utilities.
The stronger-than-expected data presents a complex picture for the Federal Reserve. While the report points to underlying resilience in the economy, it may reduce the urgency for the central bank to consider interest rate cuts. Investors will now turn their focus to the government's more comprehensive employment report, due Friday, for further clarity on the state of the labor market. Economists expect that report from the Bureau of Labor Statistics to show a 55,000 increase in new jobs.
This article is for informational purposes only and does not constitute investment advice.
