American businesses ramped up hiring in April by the most in over a year, the latest indicator of firm demand for labor.
Private-sector payrolls climbed 109,000, ADP Research said Wednesday, with gains spread between the goods-producing and the services sectors.
The construction sector added 10,000, manufacturing added 2,000, and natural resources added 3,000.
Services sector employment climbed by 94,000. Health and education firms grew payrolls by 61,000, making it once again the fastest growing segment of the labor market. Trade, transportation, and utilities added 25,000. There were also gains in information, financial services, and leisure and hospitality.
Small businesses accounted for 65,000 of the jobs gained. Large businesses, those with over 500 employees, added 42,000. Medium-sized businesses, those with 50 to 499 employees, added just 2,000.
“Small and large employers are hiring, but we’re seeing softness in the middle,” said Dr. Nela Richardson, chief economist, ADP. “Large companies have resources to deploy, and small ones are the most nimble, both important advantages in a complex labor environment.”
Unemployment is very low and labor market growth has been restrained due to restrictions on immigration, making it harder for businesses to attract workers.
Pay growth for job-stayers slowed slightly to 4.4 percent. For job-changers, year-over-year pay gains were steady at 6.6 percent. Manufacturing employees have seen pay growth of 4.8 percent over the past year. Younger workers have seen the largest gains, with men between 25 and 34 seeing their wages rise 6.5 percent and young women seeing 6.1 percent growth.
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