ADP Signals Weakest Job Gains In April Since COVID Lockdowns

On the heels of unprecedentedly strong labor indications from the JOLTS data, and the ongoing multi-decade lows in jobless claims, analysts expected ADP to report strong gains in employment for April. However, the gains were disappointing – gainingh only 247k jobs, the lowest since April 2020

Source: Bloomberg

This is the 24th straight month of employment gains – according to ADP – but we note that small businesses saw huge job losses…

Services once again dominated the jobs gains…

“In April, the labor market recovery showed signs of slowing as the economy approaches full employment,” said Nela Richardson, chief economist, ADP.

“While hiring demand remains strong, labor supply shortages caused job gains to soften for both goods producers and services providers. As the labor market tightens, small companies, with fewer than 50 employees, struggle with competition for wages amid increased costs.”

Indeed they are – the biggest Small Business job losses since April 2020…

And we are sure The Fed hiking rates will help…