Updated May 1st, 2024 at 18:53 IST

US private payrolls data exceeds expectations in April

According to the ADP Employment report released on Wednesday, private payrolls surged by 1,92,000 jobs last month.

Reported by: Business Desk
Private payrolls in the United States saw a stronger-than-expected increase in April | Image:Reuters
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US April payrolls data: Private payrolls in the United States saw a stronger-than-expected increase in April, indicating that the labour market sustained its positive momentum early in the second quarter.

According to the ADP Employment report released on Wednesday, private payrolls surged by 1,92,000 jobs last month, following an upwardly revised gain of 2,08,000 in March. The figure surpassed economists' expectations, who had anticipated a rise of 1,75,000 jobs compared to the previously reported 184,000 in March.

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Nearly all industries, except for the information sector, saw gains in hiring last month. The construction sector led the way with the addition of 35,000 jobs, followed by a 26,000 increase in trade, transportation, and utilities payrolls. Professional and business services added 22,000 positions, while the financial activities industry saw employment rise by 22,000. Although manufacturing payrolls increased by 9,000, the information sector shed 4,000 jobs.

Wages for workers who remained in their jobs rose by 5.0 per cent year-on-year in April, slightly lower than the 5.1 per cent increase seen in March. Meanwhile, wages for job switchers advanced by 9.3 per cent, down from a 10.1 per cent rise in the previous month.

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The ADP report, developed in collaboration with the Stanford Digital Economy Lab, precedes the release of the Labor Department's comprehensive employment report for April, scheduled for Friday.

Later on Wednesday, Federal Reserve officials are expected to keep the benchmark overnight interest rate unchanged at the current range of 5.25 per cent-5.50 per cent. Financial markets have adjusted their expectations for a rate cut, now anticipating it in September rather than June, reflecting confidence in the labour market's resilience.

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While some economists anticipate a slowdown in job growth in the coming months, others believe that the window for the Fed to initiate an easing cycle may be closing.

According to a Reuters survey, the Labor Department is expected to report an increase of 190,000 private payrolls last month, following a gain of 232,000 in March. Total nonfarm payrolls are projected to rise by 243,000 jobs, with the unemployment rate holding steady at 3.8 per cent and annual wage growth easing to 4.0 per cent from 4.1 per cent in March.

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(With Reuters inputs)
 

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Published May 1st, 2024 at 18:40 IST