Economy Expands: Private Sector Records 62,000 New Positions in April, per ADP Report; Wage Increase Continues at a Consistent Pace
Title: April 2025 Job Market Report: A Mixed Bag for U.S. Employment
Let's Get Down to Brass Tacks: The latest employment report from ADP has us scratching our heads. Here's a lowdown on what's happening in the U.S. job market.
The Lowdown: Thanks to the April 2025 ADP National Employment Report, we now know that private-sector employment in the U.S. slowly grew by 62,000 jobs. But don't pop the champagne just yet — annual pay increased slightly, standing at a 4.5 percent hike. Some experts are calling this unease, citing policy and consumer uncertainty weighing on employers' decision-making during this phase of growth.
Breaking It Down: The job growth was mainly driven by the goods-producing sector, adding 26,000 jobs. Construction led the charge with 16,000 new jobs, followed by natural resources and mining with 6,000 and manufacturing with 4,000. On the other hand, the service-providing sector posted a gain of 34,000 jobs. Trade, transportation, and utilities chipped in with 21,000 positions, financial activities brought 20,000, and leisure and hospitality clocked in with 27,000 jobs. However, some service sectors saw losses, including information (-8,000), professional and business services (-2,000), education and health services (-23,000), and other services (-1,000).
Regionally Speaking: The Midwest led the job gain race with 42,000 jobs, with the East North Central division accounting for most of the increase. The Northeast managed a 10,000-job gain, driven by a 43,000-job surge in the Middle Atlantic, but dampened by a 33,000-job decline in New England. The South added only 3,000 jobs, with East South Central seesawing with a 54,000 gain but West South Central losing 43,000. The West recorded a 9,000-job increase, with smaller gains in the Mountain region and the Pacific.
Sizing Things Up: By company size, medium establishments (50-499 employees) added 40,000 jobs, small establishments (1-49 employees) added 11,000, and large establishments (500+ employees) added 12,000. Within small businesses, those with fewer than 20 employees added 20,000 jobs, while those with 20-49 employees lost 9,000.
Putting Your Money Where Your Mouth Is: Annual pay for job-stayers edged up 4.5 percent year-over-year, slightly down from March's pace. Job-changers saw a slight increase in annual pay gains, up from 6.7 percent in March to 6.9 percent in April.
In the Details: By sector, job-stayers in the goods-producing industries experienced pay increases of 4.4 percent, 4.7 percent, and 4.6 percent in natural resources/mining, construction, and manufacturing, respectively. In the service-providing industries, gains included 4.3 percent in trade/transportation/utilities, 4.1 percent in information, 5.1 percent in financial activities, 4.3 percent in professional/business services, 4.7 percent in education/health services, 4.7 percent in leisure/hospitality, and 4.3 percent in other services.
Size Matters: Pay growth by firm size varied, with small firms showing the lowest increases. Job-stayers at firms with 1-19 employees saw a 2.8 percent rise, while those at firms with 20-49 employees had a 4.2 percent increase. At medium and large firms, pay grew by 4.8 to 4.9 percent.
A Word of Warning: The March jobs total was revised down from 155,000 to 147,000. So, as they say, don't count your chickens before they've hatched!
- The goods-producing sector, including natural resources and mining, construction, and manufacturing, witnessed growth in April 2025, as per the ADP National Employment Report.
- In the realm of finance, Annual pay for financial activities saw a significant 5.1 percent increase in the service-providing industries.
- Richardson, an economist, suggested that policy and consumer uncertainty are factors that might be impeding employers' decision-making during the current growth phase.
- The frequency of pay growth varies with the size of businesses, with small firms showing the lowest increases, while medium and large firms exhibit higher growth rates.
