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ADP Sees Surprising Broad-Based Strength

US DATA
  • ADP employment was much stronger than expected in April, rising 296k (cons 150k) after a minimally revised 142k (initial 145k), for its strongest monthly print since July.
  • As of today’s data post prior benchmark revisions, ADP employment growth has only exceeded private payrolls in two of the past twelve months, undershooting by an average -55k per month.
  • Gains by industry are broad-based but most outsized in the 20-49 employees category.
  • Press release summary: “The slowdown in pay growth gives the clearest signal of what's going on in the labor market right now. Employers are hiring aggressively while holding pay gains in check as workers come off the sidelines. Our data also shows fewer people are switching jobs.”

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