ADP Report... "Widespread Hiring"
Increase Slows Compared to March
In April this year, private employment in the United States increased more than market expectations, indicating that it remains robust.
According to the US employment report released on the 1st (local time) by ADP, a private labor market research firm, private sector new job creation in April was 192,000, surpassing the market expectation of 179,000. However, the increase in private new employment slowed compared to March, which saw a revised increase of 208,000.
By sector, the leisure and hospitality sector saw the largest increase with 56,000 jobs added. This was followed by construction with 35,000, trade, transportation, and utilities and education and healthcare services each with 26,000, and professional and business services with 22,000 new jobs. On the other hand, the information sector decreased by 4,000 jobs.
The pace of wage growth has slowed. Wages for workers who have been in the same job for the past 12 months rose by 5% year-over-year, marking the smallest increase since August 2021. This is interpreted as a sign that wage-driven inflationary pressures are easing. The wage growth rate for job changers was recorded at 9.3%.
Nela Richardson, ADP’s Chief Economist, analyzed, "Hiring was broadly conducted in April," adding, "Only the information sector, including communications, media, and information technology (IT), showed weakness with job losses."
The ADP report was released ahead of the US Department of Labor’s April employment report scheduled for release on the 3rd. To more accurately assess the labor market situation, the official government report should be reviewed. The market expects that nonfarm payroll employment for April, to be released by the Department of Labor, will increase by 243,000, a significant decrease compared to March’s 303,000. The unemployment rate for April is expected to remain steady at 3.8%, the same as the previous month.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
