Jobs Report: Private sector hiring ticks up, championed by growth in the service-providing sector

Mortgage & Real Estate

The National Employment Report indicates that private sector employment increased by 275,000 jobs from March to April, according to the ADP Research Institute and Moody’s Analytics.

“April posted an uptick in growth after the first quarter appeared to signal a moderation following a strong 2018,” ADP Research Institute Vice President and Co-head Ahu Yildirmaz said. “The bulk of the overall growth is with service providers, adding the strongest gain in more than two years.”

 Additionally, the report revealed that the number of jobs added in March was revised upward from 129,000 to 151,000.

The chart below demonstrates the rate of increase since 2013:

(Click to enlarge; image courtesy of ADP)

ADP employment report - April

Notably, the report said construction jobs grew from last month, and overall the goods-producing sector is predicted to increase by 52,000 jobs.

Below is a breakdown of job segments that saw changes in employment between March and April:

Natural resources and mining: Decrease 2,000

Construction: Increase 49,000

Manufacturing: Increase 5,000

The service-providing sector is predicted to increase by 223,000 jobs, including:

Trade, transportation and utilities: Increase 37,000

Information: Decrease 1,000

Financial activities: Increase 6,000

Professional and business services: Increase 59,000

Education and health services: Increase 54,000

Leisure and hospitality: Increase 53,000

Other services: Increase 14,000

“The job market is holding firm as businesses work hard to fill open positions,” Moody’s Analytics Chief Economist Mark Zandi said. “The economic soft patch at the start of the year has not materially impacted hiring. April’s job gains overstate the economy’s strength, but they make the case that expansion continues on.”

NOTE: This report is a monthly measure of the change in total U.S. non-farm private employment derived from actual, anonymous payroll data of client companies served by the company. The data is collected and processed with statistical methodologies similar to those used by the U.S. Bureau of Labor Statistics.

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