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ADP: Jobs growth in April misses expectations

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ADP: Jobs growth in April misses expectations

Middle market creates 70,000 jobs; 169,000 jobs created during the month overall.

Private sector employment increased by 169,000 jobs in April, according to payroll processing giant ADP. Middle market companies added 70,000 new workers, which comprised 41% of the total.  It was the lowest job creation figure since January 2014.

Analysts had expected an increase of 200,000 overall.

This should prove temporary and job growth will reaccelerate this summer.”

Goods-producing employment declined by 1,000 jobs in April, down from 3,000 jobs gained in March. The construction industry added 23,000 jobs, up from 21,000 last month. Meanwhile, manufacturing lost 10,000 jobs in April, after losing 3,000 in March.

Service-providing employment rose by 170,000 jobs in April, down slightly from 172,000 in March. The report indicates that professional/business services contributed 34,000 jobs in April, up from March’s 28,000. Expansion in trade/transportation/utilities grew by 44,000, up from March’s 41,000. The 7,000 new jobs added in financial activities is a drop from last month’s 12,000.

"April job gains came in under 200,000 for the second straight month,” said Carlos Rodriguez, president and chief executive officer of ADP. “Companies with 500 or more employees had the slowest growth.”

Mark Zandi, chief economist of Moody’s Analytics, said, “Fallout from the collapse of oil prices and the surging value of the dollar are weighing on job creation. Employment in the energy sector and manufacturing is declining. However, this should prove temporary and job growth will reaccelerate this summer.”

 

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