USD: US ADP Employment Surpasses Expectations in April
The US Private ADP employment change came at 192K in the April month versus 208K printed in the March month and beat the estimation of 179K. US Dollar moved up after the employment figures printed positive numbers and it is additional benefit for FED to keep rates hold or hike in upcoming meetings.
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In April, the United States saw a rise in private sector employment, with data released by Automatic Data Processing (ADP) indicating an increase of 192,000 jobs. This figure surpassed market expectations, as consensus estimates had anticipated a gain of 175,000 jobs for the same period. It’s worth noting that this reading was slightly lower than the previous month’s increase of 208,000 jobs, which had been revised from an initial estimate of 184,000.
ADP’s Chief Economist, Nela Richardson, noted that the hiring trend in April was broad-based, with notable job gains across various sectors. However, she highlighted weakness in the information sector, encompassing telecommunications, media, and information technology, which experienced job losses and the slowest pace of pay gains since August 2021.
Additionally, ADP’s press release indicated that year-over-year pay gains for existing employees remained relatively stable in April, holding steady at 5%. However, there was a slight decline in pay growth for job-changers, dropping from 10.1% in March to 9.3% in April, though still higher than earlier in the year.
In response to the ADP Employment Report, the US Dollar (USD) Index exhibited a slight defensive stance in trading. Despite this, it maintained its position towards the upper end of the monthly range, above the 106.00 level. Market participants remained cautious, with the impending Federal Open Market Committee (FOMC) event later in the session and the highly anticipated Nonfarm Payrolls report scheduled for release on Friday influencing sentiment.
USD: ADP Report: Private Sector Jobs Rise by 192K in April; Annual Pay Up 5.0%
In April, the United States experienced a Private ADP Employment Change of 192,000, which marked a decline from the previous month’s figure of 208,000. However, this April reading surpassed market expectations, which had projected an increase of 179,000 jobs. Following the release of these positive employment figures, the US Dollar exhibited upward movement in the financial markets.
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The favorable employment data is perceived as an additional factor bolstering the Federal Reserve’s stance to maintain the current interest rates or even consider hiking them in the forthcoming monetary policy meetings. This positive momentum in job creation indicates a robust labor market, which can potentially influence the Fed’s decision-making process regarding monetary policy adjustments.
The latest April ADP® National Employment Report™, a collaborative effort between the ADP Research Institute® and the Stanford Digital Economy Lab (“Stanford Lab”), revealed a significant increase in private sector employment by 192,000 jobs. Moreover, the annual pay witnessed a robust growth of 5.0 percent year-over-year.
This report serves as an independent and high-frequency gauge of the private-sector labor market, drawing insights from actual anonymized payroll data encompassing over 25 million U.S. employees. By leveraging ADP’s finely-grained anonymized and aggregated payroll data, it offers a comprehensive view of the current month’s total private employment change, supplemented by weekly job data from the previous month. Given that the underlying ADP payroll databases are continuously updated, the report provides a near real-time measure of U.S. employment trends, offering valuable insights into labor market dynamics.
Nela Richardson, the chief economist at ADP, commented on the findings, stating, “Hiring was broad-based in April, with the exception of the information sector – telecommunications, media, and information technology – which showed weakness, posting job losses and the smallest pace of pay gains since August 2021.”
USD: Private Payrolls Up by 192K in April, Exceeding Expectations
In April, the US saw private employment grow by 192,000 jobs, a slight dip from the previous month’s 208,000. However, this beat the market’s forecast of 179,000 new jobs. The release of these upbeat employment figures boosted the US Dollar in financial markets.
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This positive employment data adds to the argument for the Federal Reserve to keep interest rates steady or possibly even raise them in upcoming meetings. It signals a strong labor market, which could sway the Fed’s decisions on monetary policy adjustments.
Private payrolls in the United States experienced a faster-than-anticipated growth trajectory in April, signaling ongoing strength in the labor market, as reported by ADP.
Meanwhile, another report highlighted a downward trend in job openings, plummeting to their lowest levels since early 2021.
According to the payroll processing firm’s data released on Wednesday, companies added 192,000 workers in April. Although slightly lower than March’s upwardly revised figure of 208,000, it surpassed the Dow Jones consensus estimate of 183,000.
Simultaneously, ADP’s wage measure revealed a 5% year-over-year increase in worker pay, marking a multiyear low. This provided a glimmer of positivity amidst concerns over persistent inflation, which has outpaced expectations.
ADP’s chief economist, Nela Richardson, commented on the broad-based hiring in April, noting weakness only in the information sector, where telecommunications, media, and information technology experienced job losses and minimal wage growth compared to August 2021.
Among the industries, leisure and hospitality saw the strongest gains with an increase of 56,000 jobs. Construction added 35,000 jobs, while trade, transportation, and utilities, along with education and health services, each contributed 26,000 jobs to the overall increase. Professional and business services saw an addition of 22,000 jobs, and financial activities added 16,000.
Large companies with 500 or more employees accounted for the most significant hiring surge, adding 98,000 jobs.
In a separate release, the Labor Department’s report revealed a decline in job openings in March, dropping to a seasonally adjusted 8.49 million, the lowest since February 2021. This decline was observed across hiring, separations, and quits.
These releases precede the highly anticipated nonfarm payrolls report, scheduled for Friday. While ADP’s figures have consistently lagged behind the Labor Department’s count in recent months, March’s numbers were relatively close. The Bureau of Labor Statistics reported a private payroll increase of 232,000, compared to ADP’s 208,000.
The consensus estimate for Friday’s report anticipates total nonfarm payroll growth of 240,000 for April, a decline from March’s figure of 303,000.
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