Private payroll growth slowed to 62,000 in April, well below expectations

Economic

China–U.S. Trade War

Summary:

Private payroll growth in April slowed sharply to 62,000 jobs, missing forecasts, as businesses reacted cautiously to Trump’s tariff threats; wage growth also cooled, highlighting rising economic uncertainty.

Companies slowed hiring sharply in April as they braced against potential impacts from President Donald Trump’s tariffs against U.S. trading partners, ADP reported Wednesday.

Private sector payrolls rose by just 62,000 for the month, the smallest gain since July 2024, amid heightened uncertainty over the degree of the tariffs and the impact they would have on hiring plans and broader economic conditions.

The total marked a deceleration from the downwardly revised gain of 147,000 in March and missed the Dow Jones consensus estimate for an increase of 120,000.

“Unease is the word of the day. Employers are trying to reconcile policy and consumer uncertainty with a run of mostly positive economic data,” said ADP’s chief economist, Nela Richardson. “It can be difficult to make hiring decisions in such an environment.”

Wage gains also took a step backward, rising 4.5% from a year ago for those staying in their jobs, down 0.1 percentage point from March. However, job changers saw an increase to 6.9%, up 0.2 percentage point.

From a sector standpoint, leisure and hospitality posted the biggest gain, adding 27,000 jobs. Others that showed increases included trade, transportation and utilities (21,000), financial activities (20,000), and construction (16,000). Education and health services lost 23,000 positions while information services fell by 8,000.

The ADP estimate serves as a precursor to Friday’s nonfarm payrolls data from the Bureau of Labor Statistics, and the two reports can differ substantially. Economists surveyed by Dow Jones are looking for job growth of 133,000 in the BLS report, which unlike ADP includes government hiring. The unemployment rate is expected to be unchanged at 4.2%.

Source: cnbc

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Private payroll growth slowed to 62,000 in April, well below expectations

Source: cnbc

Risk Disclosure