“The gloomy news continued for jobs as ADP reported Wednesday that private companies created just 119,000 new positions in April.
That was well below expectations and confirmation that the labor market is slowing heading into late spring and early summer.
Economists surveyed by Reuters expected the ADP report to show the private sector created 150,000 jobs in April, down from 158,000 in March.
“Nearly every industry has seen slower growth since the beginning of the year,” Moody’s economist Mark Zandi said on CNBC. “Smaller businesses are experiencing much weaker growth.”
Moody’s Analytics conducts the survey in conjunction with ADP.
The report comes two days before the government releases its nonfarm payrolls growth count for April. Economists recently have been nudging down their projections, which is pegged around 150,000 after March’s dismal 88,000 reading.
The weakness from the ADP report could cause expectations to dim even further.
Small businesses accounted for 50,000 of the new positions, but Zandi noted that the sector is seeing a slowdown likely attributable to the onset of the Affordable Care Act national healthcare plan.
Companies with more than 50 employees will fall under the umbrella of the plan, also known as Obamacare…..”
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