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April Private Job Growth Lags Market Expectations, ADP Data Show
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April Private Job Growth Lags Market Expectations, ADP Data Show
May 25, 2025 10:59 PM

03:11 PM EDT, 04/30/2025 (MT Newswires) -- Employment growth in the US private sector missed Wall Street's estimates for April, while wage growth showed mixed results for job stayers and those who switch to new roles, Automatic Data Processing ( ADP ) data showed Wednesday.

Private employment rose by 62,000 jobs this month, ADP reported. The consensus was for a 115,000 print in a survey compiled by Bloomberg. Job gains for March were revised to 147,000 from 155,000.

April's tally represents the smallest monthly gain in nine months, Stifel said in a note to clients.

Annual wage growth for job stayers came in at 4.5% in April, a "slight" deceleration from last month, ADP said. Pay gains for job changers accelerated to 6.9% from 6.7% sequentially, according to the report.

"Unease is the word of the day," ADP Chief Economist Nela Richardson said in a statement. "Employers are trying to reconcile policy and consumer uncertainty with a run of mostly positive economic data. It can be difficult to make hiring decisions in such an environment."

Earlier this month, US President Donald Trump announced sweeping new tariffs on imports, including from China. Trump later declared a 90-day pause on certain duties for non-retaliating countries, though Washington and Beijing have been in a deadlock.

Service-related industries added 34,000 jobs in April, led by a 27,000 jump in the leisure and hospitality sector. The goods-producing sector gained 26,000 jobs, with the construction sector adding 16,000 jobs. Medium businesses added 40,000 jobs, while large and small establishments logged gains of 12,000 and 11,000, respectively.

The Bureau of Labor Statistics is expected to report Friday that the US economy added 129,000 nonfarm jobs this month, which would mark a drop from a 228,000 increase reported for March, according to a Bloomberg poll.

Official data showed Wednesday that the US economy contracted in the March quarter, representing the first quarterly decline in three years, with analysts expecting tariffs to further slow activity down later in the year.

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