ADP’s Employment Report showed that private payrolls rose more than expected in April, led by another boost from the leisure and hospitality sector. Employers added 192,000 new jobs versus the 175,000 that had been forecasted, while job growth in February was also revised higher by 24,000 jobs.
What’s the bottom line? ADP’s Chief Economist, Nela Richardson, noted that “hiring was broad-based in April” with only the information sector posting losses. Growth among small businesses remained muted, however, as businesses with fewer than 50 employees added 38,000 jobs, versus 160,000 new jobs added among medium and large companies combined. Annual pay gains for job stayers have been decelerating, with ADP reporting an average increase of 5% in April versus 5.1% in March. Job changers saw an average increase of 9.3% and while this was a decline from 10.1% in March, it’s above the levels seen at the start of the year.