Businesses went on a hiring spree in April, payroll processing firm ADP said Wednesday.
Payrolls at private companies grew by 296,000 in April, far more than the 143,000 expected, data from ADP showed Wednesday. The prior month’s estimate was revised down to 142,000 from 145,000.
The surge in hiring raises questions about the effectiveness of the Federal Reserve’s rate hikes. Fed officials have said that they want to reduce demand for labor to fend off inflationary pressures.
The services sector added 229,000 jobs, ADP reported. Leisure and hospitality businesses expanded by 154,000. Education and health services grew by 69,000. Trade, transportation, and utilities added 32,000.
Not all parts of the economy saw growing payrolls. Financial firms shed 28,000 workers. Professional and business services shrank by 16,000. Information technology payrolls grew by just 2,000.
Construction payrolls grew by 53,000. Mining and natural resources jobs expanded by 52,0000. Manufacturing, however, shrank by 38,000.
Pay growth continued to slow. Job changers in particular saw a dramatic decline, with pay slowing from 14.2 percent growth to 13.2 percent, the slowest pace of growth since November 2021. Those who stayed at their jobs saw wages rise 6.7 percent.