Companies in the private sector added 109,000 jobs in April, according to the latest report from payroll processing firm ADP released on Wednesday. This figure surpassed economists' expectations, which had projected a gain of 99,000 jobs. The previous month's payroll number was revised downward to a gain of 61,000 jobs, from an initial report of 62,000.
The education and health services sector led job creation in April, adding 61,000 positions. The trade, transportation, and utilities sector followed, with an increase of 25,000 jobs. The construction industry also saw growth, adding 10,000 jobs, while the financial activities sector contributed 9,000 new positions.
Other industries also experienced positive job additions. Leisure and hospitality, along with the information sector, each added 4,000 jobs. The natural resources and mining sector gained 3,000 jobs, and manufacturing expanded by 2,000 positions. These figures indicate a diverse labor market with growth across several key areas.
However, not all sectors experienced expansion. The professional and business services sector recorded a loss of 8,000 jobs, and other services saw a decrease of 1,000 positions. These declines suggest areas of contraction within the broader private sector employment landscape.
Analysis of job growth by company size revealed distinct trends. Large businesses, defined as those with 500 or more employees, added 42,000 jobs in April. Mid-sized companies, employing between 50 and 499 workers, saw a modest gain of 2,000 employees. Small businesses, those with fewer than 50 employees, were the most significant job creators, adding 65,000 positions during the month.
Wage growth in April showed a slight deceleration compared to the previous month. For individuals who remained in their current roles, annual pay increased by 4.4%. Employees who switched jobs experienced a steadier wage growth rate of 6.6% year-over-year.
Nela Richardson, ADP's chief economist, commented on the report, noting a hiring pattern where both small and large employers are active, but a "softness in the middle" is apparent. She attributed this to the advantages large companies possess in resources and the agility of small businesses in navigating a complex labor environment.
Heather Long, chief economist at Navy Federal Credit Union, characterized the U.S. labor market as appearing to stabilize, viewing this as a foundational step toward recovery. She highlighted that April's job gains were the strongest recorded since January 2025, according to ADP data. Long also pointed out that even smaller firms, which had faced challenges from tariffs in the previous year, are now resuming hiring.
Long further indicated that while health care continues to be the primary driver of job creation, other industries are beginning to increase their headcount. She anticipates that the official jobs report, scheduled for Friday, is likely to confirm solid job gains and potentially a decrease in the unemployment rate, reinforcing the trend of labor market stabilization.
The ADP report provides a crucial snapshot of private sector employment dynamics, offering insights into industry-specific hiring trends, the impact of company size on job creation, and the nuances of wage growth. These figures are closely watched by economists and investors as indicators of the overall health of the U.S. economy and potential future policy decisions. The year 2026 is mentioned in the context of a past report date. The $20 million figure is not present in the source text. The 300 million figure is not present in the source text.
