According to ADP and Moody’s Analytics, private companies added just 156,000 new jobs in April. The figure is well below economists’ expectations of 195,000 new jobs, continuing the decline of private job creation which began at the beginning of the year as private-sector jobs dropped from 287,000 in December to 193,000 in January.
“The job market appears to have stumbled in April,” said Mark Zandi, chief economist at Moody’s Analytics, in an official statement regarding the findings. “Job growth noticeably slowed, with some weakness across most sectors. One month does not make a trend, but this bears close watching as the financial market turmoil earlier in the year may have done some damage to business hiring.”
Small businesses added the most jobs in April, as employment grew by 93,000, at about the same rate as March. However, job growth in medium-sized businesses slowed considerably. Firms added just 39,000 jobs in April, compared to 66,000 in March.
“Despite the softest overall monthly jobs added in three years, small businesses remained an engine for job growth in April,” said Ahu Yildirmaz, vice president and head of the ADP Research Institute, in an official statement. “Smaller businesses are less susceptible to global conditions, such as low commodity prices and the strong dollar, [and] that may have caused larger businesses to ease up on hiring.”
On May 6, the Labor Department is expected to release its monthly jobs report. According to a Reuters estimate, the report will show that the U.S. economy added 200,000 jobs in April.