ADP April jobs estimate near expectation; jobless rate could hit 3s
Private-sector employment increased by 204,000 in April, on a seasonally adjusted basis, ADP estimated Wednesday.
In March, ADP says 228,000 jobs were added, compared to its previous estimate of 241,000.
Economists surveyed by IFR Markets projected a 203,000 job gain for April.
“The labor market continues to maintain a steady pace of strong job growth with little sign of a slowdown,” according to Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “However, as the labor pool tightens it will become increasingly difficult for employers to find skilled talent. Job gains in the high-skilled professional and business services industry accounted for more than half of all jobs added this month. The construction industry, which also relies on skilled labor, continued its six month trend of steady job gains as well.”
“Despite rising trade tensions, more volatile financial markets, and poor weather, businesses are adding a robust more than 200,000 jobs per month,” said Mark Zandi, chief economist of Moody’s Analytics. “At this pace, unemployment will soon be in the threes, which is rarified and risky territory, as the economy threatens to overheat.”