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US private sector adds jobs in April, planned cuts fall

US private sector adds jobs in April, planned cuts fall
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First Published: Wed, May 05 2010. 08 35 PM IST
Updated: Wed, May 05 2010. 08 35 PM IST
New York: US private employers added 32,000 jobs in April, roughly in line with expectations, and revised data showed an unexpected rise in March jobs.
The March private sector figure was revised to show a gain of 19,000 — the first increase since January 2008, according to a report by payrolls processor ADP Employer Services on Wednesday. The March figure was originally reported as a fall of 23,000.
For April, economists had expected the privately released ADP report to show a rise of 30,000 jobs, based on a Reuters poll of analysts.
“The number came in in-line with expectations. We’re expecting a much larger non-farm payrolls on Friday because of census hiring on the government sector,” said Michael Woolfolk, senior currency strategist at BNY Mellon in New York.
The ADP report comes just two days ahead of the more closely watched government jobs data.
According to a Reuters survey, nonfarm payrolls likely increased by 200,000 in April, adding to the prior month’s 162,000 gain. The unemployment rate, however, is expected to remain unchanged at 9.7% for a fourth month. The jobs report is due Friday.
Job growth is considered key to sustaining the economic recovery.
US stock futures added to losses after the ADP report, while US Treasury prices added to gains and the euro fell to a session low.
A separate report on Wednesday showed the number of planned layoffs at US firms fell more than 40% in April to the lowest level in nearly four years, suggesting employers are more confident about economic conditions.
Employers announced 38,326 planned job cuts last month, the lowest since July 2006 and down from 67,611 planned job cuts in March, according to the report from global outplacement consultancy Challenger, Gray & Christmas, Inc.
“It is certainly a promising trend that suggests most employers are increasingly confident about conditions going forward and slowing the pace of job cutting,” John Challenger, chief executive officer of Challenger, Gray & Christmas, said in a statement.
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First Published: Wed, May 05 2010. 08 35 PM IST