ADP is a publicly-traded company specializing in the employment space. Every month they release a National Employment Report, which breaks down the number of new jobs added to the American economy. Most experts give this monthly report a lot of credibility, due to the ADP’s previous accuracy and reputation.
Unfortunately, ADP’s April 2016 report shows a drop in private sector job creation. Most economists expected 195,000 jobs to be added nationwide; instead, only 156,000 were added.
It is believed that turmoil in the financial markets may have caused some of the drop in employment figures, along with other global and localized events.
One sector that still added jobs at about the same rate as in March was that of small business. Small businesses account for two-thirds of all employment in the United States, adding 93,000 jobs during April, about the same as during March.
Medium-sized businesses experienced a massive downturn in hiring. They added just 39,000 positions in April, down from 66,000 in March.
Overall, the increase in jobs over the past month is the smallest that the economy has seen since April 2013.
It should be noted that ADP’s report comes ahead of the Labor Department’s job report, which is expected to show 200,000 total jobs added in April.
Is this a sign that the economy is slowing down? Could the impending Presidential election be playing a factor? Share your thoughts.
