Private sector employers added 109,000 jobs in April despite losses in the professional and business services sector, while annual pay grew 4.4% year over year, payroll provider ADP
The professional and business services sector, which includes accounting, tax preparation and other services, lost 8,000 jobs last month.
"It's a two-tiered super sector, with professional service jobs, researchers, professional jobs lawyers and accountants," said ADP chief economist Nela Richardson during a conference call Wednesday. "It also has another component of that sector that's really important to watch. That's administrative support services, janitorial services, office management, clerical, that kind of thing. That sector is down 8,000 for the month."
She attributed the declines in part to large firms repurposing workers and the growing role of artificial intelligence.
However, the financial activities sector, which includes banking, added 9,000 jobs. Education and health services gained 61,000 jobs for the month, leisure and hospitality added 4,000, and trade, transportation and utilities added 25,000. Overall, the service-providing sector gained 94,000 jobs in April, while the goods-producing sector added 15,000 jobs last month, including 10,000 jobs in the construction industry, 3,000 in natural resources and mining, and 2,000 in manufacturing.
Small businesses added 65,000 in April, including 43,000 in businesses with between one and 19 employees, and 22,000 in businesses with between 20 and 49 employees. Medium-size establishments with between 50 and 249 employees gained 5,000 jobs, but those with between 250 and 499 employees lost 3,000 jobs. Large establishments with 500 employees or more gained 42,000 jobs.
Pay growth for employees who stayed in their jobs slowed slightly to 4.4%. For those who changed jobs, year-over-year pay gains held steady at 6.6%. In professional and business services, the rate of pay growth for job stayers was 4.1%.
