ADP: April Employment Jumps by 742,000

Ahead of this Friday’s Employment report from the Bureau of Labor Statistics and this morning’s Initial Claims report from the Labor Department, ADP, Roseland, N.J. said private-sector employment jumped by 742,000 jobs from March to April.

The ADP National Employment Report said by company size, small businesses added 235,000 employees; medium-sized businesses added 230,000 employees; and large businesses added 277,000 employees.

By sector, the report said goods-producing businesses added 106,000 jobs; and service-sector businesses added 636,000 jobs.

“The labor market continues an upward trend of acceleration and growth, posting the strongest reading since September 2020,” said Nela Richardson, chief economist with ADP. “Service providers have the most to gain as the economy reopens, recovers and resumes normal activities and are leading job growth in April. While payrolls are still more than 8 million jobs short of pre-COVID-19 levels, job gains have totaled 1.3 million in the last two months after adding only about 1 million jobs over the course of the previous five months.”

The ADP numbers come off a strong jobs report from BLS, which reported total nonfarm employment rose by 916,000 in March, with the unemployment rate falling to 6 percent. Expectations are high for this Friday’s report, with the median forecast showing a rise of 978,000 jobs. However, some estimates come in as high as 2.1 million.

Kathy Lien, managing director with BK Asset Management, told Reuters there is a “good chance” job growth could exceed one million in Friday’s report. However, she noted the ADP report, despite its strong numbers, actually came in below the consensus forecast of 800,000.

BLS will release its April Employment report on Friday at 8:30 a.m. ET. MBA Chief Economist Mike Fratantoni will provide commentary and analysis for the Monday, May 10 edition of MBA NewsLink.