US firms add 109,000 jobs, most since early 2025, ADP says
Employment growth was fuelled by businesses with fewer than 20 employees and those with 500 or more
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US COMPANIES boosted payrolls in April by the most in over a year, the latest evidence of stabilisation in the labour market.
Private-sector payrolls rose 109,000 in April after a revised 61,000 advance in the prior month, according to ADP Research data out on Wednesday. The median estimate in a Bloomberg survey of economists called for a 120,000 increase.
More than half of the hiring advance was due to health services and education. Trade, transportation and utilities payrolls also increased. Construction employment grew, which may reflect the building of data centres that are at the heart of massive investment in artificial intelligence.
The figures showcase a labour market that is finding its footing after an especially harsh year for hiring. Some employers may be more at ease adding to headcount now that there’s more clarity around tariff, immigration and other fiscal policies. Moreover, layoffs remain low across the economy.
The report suggests the “labour market continued positive momentum in April after a solid March,” Alex Pelle, an economist at Mizuho Securities USA, said in a note.
Employment growth was fuelled by businesses with fewer than 20 employees and those with 500 or more. Hiring was strong in the West and South.
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“Small and large employers are hiring, but we’re seeing softness in the middle,” Nela Richardson, chief economist at ADP and a contributor to Bloomberg Television, said in a statement.
Wage growth
The ADP report, published in collaboration with the Stanford Digital Economy Lab, also showed workers who changed jobs saw a 6.6 per cent increase in pay from a year earlier. Wage growth for those who stayed put was 4.4 per cent, slightly less than a month earlier.
The government’s employment report due on Friday is expected to show a more moderate pace of hiring in April, a month after the biggest advance since 2024.
Looking ahead, a key question is whether the Middle East conflict that’s already driven inflation higher and pushed consumer sentiment to record lows will eventually trickle down to the labour market.
After the Federal Reserve kept interest rates unchanged last week, Chair Jerome Powell said the job market has shown “more and more signs of stability,” a reason why policymakers are in little rush to reduce borrowing costs.
ADP bases its findings on payrolls covering more than 26 million US private-sector employees. BLOOMBERG
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