Investing.com - U.S. private employers added a far larger-than-forecast 275,000 jobs in April, according to a report by payrolls processor ADP (NASDAQ:ADP), pointing to renewed strength in the labor market after a soft patch at the start of the year.
It was the largest increase since July, when the private sector added 284,000 jobs. Economists had expected the report to show a gain of 181,000 jobs.
March’s figure was revised up to 151,000 from the 129,000 initially reported.
“April posted an uptick in growth after the first quarter appeared to signal a moderation following a strong 2018,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “The bulk of the overall growth is with service providers, adding the strongest gain in more than two years.”
“The job market is holding firm, as businesses work hard to fill open positions," said Mark Zandi, chief economist of Moody’s Analytics. "The economic soft patch at the start of the year has not materially impacted hiring. April’s job gains overstate the economy’s strength, but they make the case that expansion continues on.”
The ADP numbers come ahead of the Labor Department's nonfarm payrolls report for April on Friday, which includes both public and private-sector employment.
Economists expect that report to show a gain of 185,000 jobs, while the unemployment rate is forecast to hold steady at 3.8%.