MNI BRIEF: US Labor Market Frictions Hurting Job Gains-ADP

U.S. labor market frictions such as childcare challenges and lingering virus fears kept the monthly ADP payrolls report from being even stronger than the 692,000 gain, Chief Economist Nela Richardson told reporters Thursday.

Richardson expects those frictions to be "short-lived and temporary," positioning the labor market for a "strong second quarter" and further gains into the fall.

Enhanced unemployment benefits haven't been keeping workers out of the workforce, she said. With half of state governments terminating those benefits this month, there was little sign of a shift in labor supply backing up the idea that workers are sitting out to collect benefits, she said.

"If that was the key driver, you would have seen it this month," she said. "I don't think workers would wait until the end of the month to start looking for work."