U.S. firms add 62,000 jobs, smallest gain since July in ADP data

Hiring at U.S. companies moderated in April to the slowest pace in nine months, indicating waning demand for workers amid economic uncertainty.

Private-sector payrolls increased by 62,000 this month, according to ADP Research, below all estimates in a Bloomberg survey of forecasters. The education and health services, information and professional and business services sectors all registered outright declines in headcount.

Wednesday’s figures, alongside other recent data, paint a mixed picture of the labor market. While the ADP data shows a pullback in hiring, filings for unemployment benefits remain near pre-pandemic averages, indicating layoffs are still subdued.

“Unease is the word of the day. Employers are trying to reconcile policy and consumer uncertainty with a run of mostly positive economic data,” Nela Richardson, chief economist at ADP, said Wednesday in a statement. “It can be difficult to make hiring decisions in such an environment.”

President Donald Trump’s tariffs on U.S. trading partners have led some businesses to halt spending plans and could result in weaker labor demand in the months ahead. There are also a growing number of job-cut announcements at companies, including federal contractors whose contracts have been canceled by the Department of Government Efficiency.

A monthly University of Michigan survey suggests consumers remain concerned about higher unemployment over the next year and weaker income growth. Federal Reserve Chair Jerome Powell has stressed the need for the central bank to ensure the tariffs do not result in a persistent rise in inflation, warning that it may have to choose between containing price pressures and supporting the labor market.

The ADP report, published in collaboration with the Stanford Digital Economy Lab, showed mixed figures on wage growth. Workers who changed jobs saw a 6.9% increase in pay, while those who stayed put saw a 4.5% gain. ADP bases its findings on payrolls covering more than 25 million U.S. private-sector employees.

Separate data out Wednesday from the Bureau of Labor Statistics showed an index of employment costs including wages and benefits rose 0.9% in the first three months of the year, in line with the consensus estimate. From a year earlier, the index was up 3.6%, marking the slowest pace of increase since 2021.

The government’s monthly employment report due Friday is expected to show job growth, including government positions, slowed in April and the unemployment rate remained steady.