ADP jobs report April 2025:

In April, companies across the private sector slowed their hiring efforts significantly as they navigated the potential implications of President Donald Trump’s tariffs on U.S. trading partners. According to a report from ADP, private sector payrolls only increased by 62,000 for the month, marking the smallest gain since July 2024. This slowdown in hiring was largely driven by the uncertainty surrounding the tariffs and their potential impact on hiring plans and overall economic conditions.

The figure of 62,000 fell short of the Dow Jones consensus estimate of 120,000 and represented a notable deceleration from the revised gain of 147,000 in March. ADP’s chief economist, Nela Richardson, highlighted the prevailing unease among employers as they grappled with policy and consumer uncertainty amidst a backdrop of generally positive economic data. This environment of uncertainty made it challenging for companies to make confident hiring decisions.

In addition to the sluggish hiring numbers, wage gains also saw a modest setback in April. Wages for individuals remaining in their current positions rose by 4.5% compared to a year ago, a slight decrease from the previous month. However, job changers experienced an increase in wages, with a 6.9% rise year-over-year.

Breaking down the data by sector, industries such as leisure and hospitality, trade, transportation and utilities, financial activities, and construction saw gains in employment. Conversely, sectors like education and health services, as well as information services, reported losses in positions.

The ADP report serves as a precursor to the upcoming nonfarm payrolls data from the Bureau of Labor Statistics, which is set to be released on Friday. Economists are anticipating job growth of 133,000 in the BLS report, which includes government hiring. The unemployment rate is expected to remain steady at 4.2%.

As companies continue to navigate the uncertainties surrounding trade policies and economic conditions, the hiring landscape remains fluid. The April data underscores the challenges that businesses face in making hiring decisions in a climate of heightened uncertainty and rapidly changing economic conditions.