Private-sector payrolls once again expanded at a mediocre pace
last month, according to an employment survey released
Wednesday.
Private payrolls in the U.S. increased by just 169,000 jobs in
April, said the national employment report compiled by payroll
processor Automatic Data Processing Inc. and forecasting firm
Moody's Analytics.
Economists surveyed by The Wall Street Journal expected ADP
would report 205,000 new jobs were added in April. The March ADP
increase was revised down to 175,000 from 189,0000, a number that
had been below expectations.
"Fallout from the collapse of oil prices and the surging value
of the dollar are weighing on job creation," the report said.
The ADP report is on the list of private-sourced job reports
that come out ahead of the Bureau of Labor Statistics' employment
situation report scheduled for Friday. Earlier this month, the
Institute for Supply Management reported that its April surveys of
businesses showed a contraction in factory payrolls but solid
hiring among non-manufacturers.
Economists expect the BLS will report April nonfarm
payrolls--which include government positions--increased by 228,000
jobs, a rebound from the disappointingly weak March increase of
126,000 slots.
The April unemployment rate is projected to edge down to 5.4%
from 5.5%.
According to ADP, small businesses remain the engine of job
growth. Firms employing between one and 49 workers added 94,000 new
workers last month. Medium-sized businesses with payrolls of 50-499
workers added 70,000 employees. Large firms with 500 or more
employees hired only 5,000 more workers.
Manufacturing cut 10,000 jobs last month, said ADP. The service
sector hired 170,000 new employees. Construction payrolls increased
by 23,000.
Write to Kathleen Madigan at kathleen.madigan@wsj.com
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