Benzinga - by Piero Cingari, Benzinga Staff Writer.
The rate of job creation in U.S. private sector businesses surpassed predictions in April, indicating continued strength in the employment landscape.
Private employers added 192,000 new jobs last month, slightly down from an upwardly revised 208,000 in March, surpassing the projected 175,000, according to the most recent ADP National Employment Report.
The ADP report offers an advance look at the Bureau of Labor Statistics’ upcoming April jobs report, slated for release this Friday. Economists anticipate a decline in non-farm payroll expansion, dropping from 303,000 in March to 243,000 in April. Projections indicate the unemployment rate will hold steady at 3.8%, with average hourly earnings predicted to marginally ease from a 4.1% year-over-year increase to 4%.
April’s ADP National Employment Report: Key Highlights
- Services-providing companies added 145,000 jobs, while goods producers 47,000.
- Industries experiencing notable increases in employment include leisure and hospitality (56,000), construction (35,000), trade, transportation, and utilities (26,000), education/health services (26,000), professional and business services (22,000) and financial activities (16,000). Information was the only industry experiencing a loss of 4,000 jobs.
- Wage growth flattened, with job-stayers seeing a 5.0% pay increase, as in March, while job changers experienced a 9.3% increase, slightly down from the 10% in March.
- “Hiring was broad-based in April. Only the information sector — telecommunications, media, and information technology — showed weakness, posting job losses and the smallest pace of pay gains since August 2021,” Nela Richardson, chief economist at ADP, said.
Futures on U.S. equity indices fell during the premarket trading Wednesday, following the drops seen Tuesday. Contracts on the Nasdaq 100 and the S&P 500 were down by 0.3% and 0.5%, respectively, by 8:20 a.m. ET.
Read now: Wall Street Set To Open Lower After AMD Earnings Disappoint As Traders Look To Fed’s Powell For Relief: Why This Analyst Sees Incoming Summer Rally
Image generated using artificial intelligence via Midjourney.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.