Job Growth Slows but Remains Solid in April

The U.S. labor market remained resilient in April, though job growth decelerated slightly amid cooling wage pressures, according to the latest ADP National Employment Report.

Private sector employment increased by 192,000 jobs last month, down from an upwardly revised 208,000 in March. While a slowdown from recent months, the April number still points to a labor market that continues to expand at a healthy pace.

Wage growth also showed signs of moderating, which could provide some welcome relief on the inflation front as the Federal Reserve mulls its next policy moves. Annual pay raises averaged 5.0% for workers staying in their jobs, essentially unchanged from March. But job-switchers saw a drop in year-over-year wage gains to 9.3% from 10.1% previously.

“The job market is still hot, but maybe not sizzling like earlier this year,” said Nela Richardson, chief economist at ADP. “The slowing of wage growth for job-changers could take some pressure off of inflation.”

Hiring was broad-based across sectors in April, led by a 145,000 job gain in services. The South saw the biggest regional employment increase at 124,000.

Looking ahead, economists expect the Labor Department’s official jobs report on Friday to show the economy added around 180,000 positions in April, continuing 2024’s trend of robust but decelerating payroll growth. Overall, the latest data suggests the labor market remains tight, giving the Fed leeway to pause rate hikes soon.