The U.S. economy added around three quarters of a million private sector jobs in April, ADP said Wednesday, just shy of Wall Street forecasts ahead of Friday's official employment report that is expected to show a wave of new hiring as the economy re-opens in the waning months of the coronavirus pandemic.
Payroll processing group ADP said in its National Employment Report, which it compiles with Moody's Analytics, that private sector jobs grew by 742,000 last month, just shy of Street forecasts of a 860,000 total but the strongest monthly figure since September. The final reading for March was revised by an extra 48,000 positions to 565,000.
The Bureau of Labor Statistics will publish its official non-farm payroll report Friday, with economists looking for a headline total that represents around 978,000 million new jobs.
“The labor market continues an upward trend of acceleration and growth, posting the strongest reading since September 2020,” said ADP chief economist Nela Richardson. “Service providers have the most to gain as the economy reopens, recovers and resumes normal actvities and are leading job growth in April."
"While payrolls are still more than 8 million jobs short of pre-COVID-19 levels, job gains have totaled 1.3 million in the last two months after adding only about 1 million jobs over the course of the previous five months,” Richardson added.
U.S. equity futures were modestly higher following the data release, with contracts tied to the Dow Jones Industrial Average indicating an opening bell gain of 90 points and those linked to the S&P 500 priced for a 17 point advance.
Benchmark 10-year Treasury bond yields, meanwhile, ticked lower, to 1.6085%, while the dollar index eased 0.03% against a basket of its global peers to trade at 91.260.