US private payrolls increase by 192,000 jobs in April, beat expectations

U.S. private payrolls increased more than expected in April, suggesting that the labor market maintained its momentum early in the second quarter.

 

Private payrolls increased by 192,000 jobs last month after rising by an upwardly revised 208,000 in March, the ADP Employment report showed on Wednesday. Economists polled by Reuters had forecast private employment increasing by 175,000 last month compared to the previously reported 184,000 in March.

 

Wages for workers staying in their jobs increased 5.0% year-on-year in April after rising 5.1% in March. They advanced 9.3% for those switching jobs, slowing from a 10.1% rise in March.

 

The ADP report, jointly developed with the Stanford Digital Economy Lab, was published ahead of the release on Friday of the Labor Department’s more comprehensive and closely watched employment report for April.

 

Federal Reserve officials are later on Wednesday expected to leave the U.S. central bank’s benchmark overnight interest rate unchanged in the current 5.25%-5.50% range, where it has been since July. They have raised the policy rate by 525 basis points since March 2022. Financial markets have pushed back expectations of a rate cut this year to September from June.

 

A handful of economists continue to expect that borrowing costs may be lowered in July, believing that the labor market will slow noticeably in the coming months. Others see the window for the Fed to start its easing cycle closing.

 

According to a Reuters survey of economists, the Labor Department’s Bureau of Labor Statistics is expected to report that private payrolls rose by 190,000 jobs last month after increasing 232,000 in March.

 

Total nonfarm payrolls are estimated to have increased by 243,000 jobs after advancing by 303,000 in March. The unemployment rate is forecast unchanged at 3.8% and annual wage growth easing to 4.0% from 4.1% in March.

First Published: May 01 2024 | 7:19 PM IST