Payroll-processing company ADP says private sector job creation slowing
Washington, D.C., United States (AHN) – The latest report on private company hiring shows a disappointing 119,000 jobs created in April, according to payroll processor ADP. ADP’s report comes ahead of the official government numbers for April due out on Friday
Stock prices fell in midday trading on Wednesday as Wall Street reacted to the numbers that were lower than the 170,000 jobs many analysts expected the economy to create last month.
Dow Jones Industrial Average lost 41 points, or 0.3 percent, falling to 13,239, while the Nasdaq Composite slipped two points, or 0.1 percent, slumping to 3,048 and the Standard & Poor’s 500-stock index gave up six points, or 0.4 percent, plunging to 1,399.
ADP’s report comes ahead of the official government numbers for April due out on Friday.
The jobs that were created in April might not be the ones that many people might prefer.
That was because job creation differed between small companies, which traditionally offer fewer if any benefits, and large companies that usually have pay that is more generous and benefit packages.
Large companies with 500 or more employees added only 4,000 new employees, while small companies with fewer than 50 employees hired 58,000 people. In addition, medium-sized businesses created 57,000 jobs.
Job creation was better the previous two months with earlier ADP reports showing that companies added 228,000 jobs in February and 201,000 jobs in March.
The economy needs to create between 120,000 to 220,000 jobs monthly just to keep up with growth in the labor market.
In many months, the economy has not done that, which has meant that many of the millions of people who lost their jobs during the recession have not been able to find work. In addition, about 50 percent of recent college graduates have either been unable to find work or have had to take jobs below their skill level.