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US adds fewest private-sector jobs in three years, ADP reports

May 04, 2016

US private-sector employment rose by 156,000 jobs in April from March, the fewest jobs added in a month since April 2013, according to the ADP national employment report. The number of goods-producing jobs fell by 11,000, while service-providing jobs rose by 166,000.

April’s gain was smaller than the median forecast in a Bloomberg survey of 45 economists, which called for a 195,000 increase with estimates ranging from 131,000 to 234,000.

“The job market appears to have stumbled in April,” said Mark Zandi, chief economist of Moody’s Analytics. “Job growth noticeably slowed, with some weakness across most sectors. One month does not make a trend, but this bears close watching as the financial market turmoil earlier in the year may have done some damage to business hiring.”

April’s jobs gain is a decrease from March’s 194,000 additions, which was revised downward from 200,000.

Large businesses added 24,000 jobs in April, a decrease from the 35,000 added in March. Midsize businesses added 39,000 jobs in April, also down from March’s gain of 66,000.

Small businesses added 93,000 jobs in April, about the same number as March.

“Despite the softest overall monthly jobs added in three years, small businesses remained an engine for job growth in April,” said Ahu Yildirmaz, VP and head of the ADP Research Institute. “Smaller businesses are less susceptible to global conditions, such as low commodity prices and the strong dollar, that may have caused larger businesses to ease up on hiring.”

The ADP National Employment report is produced by ADP (NASD: ADP), in collaboration with Moody’s Analytics.