US private payrolls rise above expectations in April – ADP

The latest ADP Employment report indicates a stronger-than-expected increase in private payrolls, with 192,000 jobs added in April, surpassing forecasts and maintaining momentum into the second quarter. The data suggests that the labor market remains tight, with robust hiring across various industries except for information.

Construction led the gains with 35,000 jobs added, followed by increases in transportation, trade, and utilities payrolls by 26,000. Financial activities also saw a significant increase of 22,000 jobs, while manufacturing added 9,000 jobs. However, the information sector experienced a slight drop of 4,000 jobs.

These figures precede the release of the Labor Department’s more comprehensive employment report for April, scheduled for Friday. Economists anticipate nonfarm payrolls to have increased by 243,000 jobs, slightly lower than March’s figure of 303,000. The unemployment rate is expected to remain steady at 3.8%, with annual wage growth easing to 4.0% from 4.1% in March.

While prevailing expectations suggest a return to the 2% inflation target and a noticeable slowdown in the labor market in the coming months, some economists remain pessimistic about the chances of rate cuts until the end of the year. These divergent views reflect the uncertainty surrounding economic conditions and the potential trajectory of monetary policy.