Businesses added 119,000 jobs in March, payroll processor ADP
said Wednesday, below economists' expectations. Job growth picked up
from the prior month but remained mired in a spring slowdown.
Economists' consensus forecast was for private-sector gains of 150,000. A further sign of recent weak growth is that payroll gains in March were revised down to 131,000 from 158,000.
"Job growth appears to be slowing in response to very significant fiscal headwinds," said Mark Zandi, chief economist at Moody's Analytics, which helps compile the report for ADP. "Tax increases and government spending cuts are beginning to hit the job market," says .
Economists estimate the Labor Department on Friday will report 148,000 job additions in March, including the private sector and federal, state and city governments, which have been cutting payrolls.
Wednesday's ADP report said trade and transportation led job gains of 29,000 in April. Professional and business services added 20,000 and construction, 15,000 Manufacturers, however, cut 10,000 jobs.
Small businesses and midsize businesses accounted for most of the job gains for the fourth straight month. Small businesses added 50,000 jobs, midsize ones, 26,000, and large companies, 43,000..
The economy recently began to show signs of slumping for the fourth straight spring. Employers added only 88,000 jobs in March, according to the Labor Department, far less than the average 200,000-plus a month from November through February. The unemployment rate fell to 7.6% from 7.7% as nearly 500,000 Americans stopped working or looking for work.
Last week, the government reported that the economy grew at a 2.5% annual rate in the first quarter, less than expected.
A slowdown has been anticipated because of recent across-the-board federal spending cuts and a payroll tax hike for working Americans.
ADP has had mixed success predicting Labor's tally, though it often foreshadows its broad trends. ADP's survey last month correctly captured the March slowdown in job growth but not the extent of it. ADP estimated that businesses added 158,000 jobs, and Labor reported just 95,000 job gains.
SOURCE : http://www.usatoday.com/story/money/business/2013/05/01/april-adp-report/2125383
Economists' consensus forecast was for private-sector gains of 150,000. A further sign of recent weak growth is that payroll gains in March were revised down to 131,000 from 158,000.
"Job growth appears to be slowing in response to very significant fiscal headwinds," said Mark Zandi, chief economist at Moody's Analytics, which helps compile the report for ADP. "Tax increases and government spending cuts are beginning to hit the job market," says .
Economists estimate the Labor Department on Friday will report 148,000 job additions in March, including the private sector and federal, state and city governments, which have been cutting payrolls.
Wednesday's ADP report said trade and transportation led job gains of 29,000 in April. Professional and business services added 20,000 and construction, 15,000 Manufacturers, however, cut 10,000 jobs.
Small businesses and midsize businesses accounted for most of the job gains for the fourth straight month. Small businesses added 50,000 jobs, midsize ones, 26,000, and large companies, 43,000..
The economy recently began to show signs of slumping for the fourth straight spring. Employers added only 88,000 jobs in March, according to the Labor Department, far less than the average 200,000-plus a month from November through February. The unemployment rate fell to 7.6% from 7.7% as nearly 500,000 Americans stopped working or looking for work.
Last week, the government reported that the economy grew at a 2.5% annual rate in the first quarter, less than expected.
A slowdown has been anticipated because of recent across-the-board federal spending cuts and a payroll tax hike for working Americans.
ADP has had mixed success predicting Labor's tally, though it often foreshadows its broad trends. ADP's survey last month correctly captured the March slowdown in job growth but not the extent of it. ADP estimated that businesses added 158,000 jobs, and Labor reported just 95,000 job gains.
SOURCE : http://www.usatoday.com/story/money/business/2013/05/01/april-adp-report/2125383
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