Private Payrolls Soar by 275,000 in April, Blows Past Estimates Out Of Water
Service-providing jobs grew by 223,000 in April as it followed a gain of 59,000
The U.S. economy added a lot more jobs than anticipated in April as payrolls in the services skyrocketed, according to data released Wednesday by ADP and Moody’s Analytics.
Last month, private payrolls grew by 275,000, which is the most significant rise since July when they increased by 284,000.
Economists polled by Dow Jones assumed private payrolls growth of 177,000.
Service-providing jobs grew by 223,000 in April as it followed a gain of 59,000 positions in professional and business services.
Fifty-four thousand jobs were also added by education and health services, while employment within the leisure and hospitality industry grew by 53,000.
Construction, manufacturing, and mining jobs saw an increase of 52,000, led by a 49,000 payrolls increase in construction.
The economy added just 5,000 manufacturing jobs while mining employment decreased by 2,000
According to CNBC: Overall, medium-sized businesses, those that employ 50 to 499 people, led the way in jobs creation last month by adding 145,000 jobs. Jobs within small companies, meanwhile, increased by 77,000 while large companies hired 53,000.
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“The job market is holding firm, as businesses work hard to fill open positions,” Mark Zandi, chief economist at Moody’s Analytics, said in a statement.
“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.”
Wednesday’s report came after the Commerce Department said last week the economy grew by 3.2% in the first quarter on an annualized basis.
That was the best start to a year since 2015.
The official jobs report for April from the government will be released Friday.
In 2018, the US economy grew at by 2.9 percent, according to the Bureau of Economic Analysis quarterly report on the gross domestic product, poised for the most robust growth in 13 years.
The impressive figure fell short of President Donald Trump's goal of a nearly 3 percent growth.
But Thursday's report showed GDP increasing at a 2.6 percent annual rate in the fourth quarter of 2018, much better than most analysts expected for the quarter which was right at the beginning of the government shut down.