U.S. private sector hiring moderated in April, but job growth was stronger than expected, driven by the services sector, payroll company ADP reported Wednesday.
According to the report, companies created 192,000 jobs in April, down slightly from the revised 208,000 the previous month.
The labor market has shown resilience despite the US central bank’s efforts to keep interest rates high and combat persistent inflation.
While higher rates increase borrowing costs for consumers and businesses (and can affect employment), the labor market has remained firm, with employers reluctant to lay off workers they initially had difficulty finding.
In turn, the strength of the labor market has helped sustain consumer spending.
«Hiring was widespread in April»said Nela Richardson, chief economist at ADP. She added that only the information sector, such as telecommunications and media, showed weakness.
Salary growth “it keeps slowing down”according to ADP, despite the fact that the average pace of hiring has accelerated in the last three months.
The salary increase of those who kept their jobs barely changed (5%); while that of those who changed jobs fell from 10.1% to 9.3%.
The entry US private sector creates more jobs than expected in April, according to a report first published in EL NACIONAL.