April ADP Jobs Report Misses Forecasts with Just 62K Private Jobs Added

Private Sector Job Growth Slows Sharply in April, Missing Expectations

U.S. private employers added just 62,000 jobs in April, significantly underperforming expectations and highlighting growing hesitation among businesses. The figure missed the consensus forecast of 114,000 and marks a steep slowdown from the revised March total of 147,000. The subdued hiring reflects employers’ caution in the face of policy uncertainty and mixed consumer signals, despite generally positive economic data.

Services Sector Weighs on Overall Growth

Job losses in key service industries led the decline. Education and health services posted the largest drop, shedding 23,000 jobs. The information sector cut 8,000 positions, while professional and business services trimmed payrolls by 2,000. These losses offset gains in other service areas, including leisure and hospitality, which led the pack with a 27,000-job increase, and trade, transportation, and utilities, which added 21,000 positions. Financial activities also contributed 20,000 jobs, offering some support to the sector.

Goods-Producing Industries See Modest Gains

Hiring in goods-producing sectors remained positive but modest. Construction added 16,000 jobs, natural resources and mining rose by 6,000, and manufacturing increased by just 4,000. While these numbers signal resilience in industrial activity, they were not strong enough to offset weakness in higher-employment service sectors.

Small and Mid-Sized Firms Lead Hiring

Job creation by establishment size showed small and mid-sized firms driving April’s limited growth. Firms with 50–249 employees added 21,000 jobs, and those with 250–499 employees followed with 19,000. Very small businesses (1–19 employees) contributed 20,000 jobs, while those with 20–49 workers cut 9,000 positions. Large firms with 500 or more employees added only 12,000 jobs, underscoring a broader trend of cautious expansion.

Market Forecast: Neutral to Bearish Short-Term Outlook

The sharp underperformance in job growth, particularly in consumer-sensitive sectors like education, health, and professional services, raises concerns about labor market momentum. With hiring slowing and uncertainty still prevalent, the April print suggests a neutral to bearish short-term outlook for labor-sensitive sectors. Traders should watch upcoming data for signs of stabilization or further weakening that could influence monetary policy expectations.

More Information in our Economic Calendar.