Employers in the private sector added 247,000 jobs last month, according to payroll giant ADP, as the labor market slowed amid inflationary pressures and rising interest rates, with small businesses losing ground.
Small businesses subtracted 120,000 jobs in April, according to the
Goods-producing businesses added 46,000 jobs for the month, including 25,000 in manufacturing and 16,000 in construction. As usual, the service-providing sector added the most jobs with a gain of 202,000 jobs in April, including 50,000 in professional and business services such as accounting and tax preparation, 8,000 in financial activities such as banking, and 77,000 in leisure and hospitality. Franchise employment grew by 47,400 jobs.
“The labor market recovery is moderating, some would say actually normalizing, as the economy is approaching full employment,” said ADP chief economist Nela Richardson during a conference call Wednesday with reporters. She noted that 247,000 jobs added in April was down from the 2021 monthly average of 573,000 and the first quarter monthly average of 530,000.
There are positive signs in the job market, as the Bureau of Labor Statistics reported Tuesday that job openings were at a record high of 11.5 million at the end of March. “That indicates that demands remains ample heading into April,” said Richardson. “Hiring remains a challenge. We saw a series high of quits of 4.5 million, but we also saw that hires remained greater than separations because people are quitting because they feel like they can get another job and they’re doing so. Initial claims for unemployment insurance remain at historic lows, so that’s a good sign in terms of the relative stability and health of the job gains that we’re going to be seeing for the remainder of the year.”
