Key takeaways:
- Payrolls recovered but growth stayed narrow: BLS reported nonfarm payrolls rose 115,000 in April, led by health care, transportation, and retail. Professional and business services added just 7,000 total, and federal employment continued its long contraction, now down 348,000 from its October 2024 peak.
- ADP reported the fastest pace of private-sector job growth since January 2025: Private employers added 109,000 jobs in April, driven by education/health services and trade/transportation. Mid-sized firms barely contributed, adding just 2,000, while small and large employers carried the weight.
- Labor market stress indicators ticked up: Unemployment held at 4.3%, but part-time employment for economic reasons rose by 445,000 to 4.9 million, reversing last month’s improvement. Long-term unemployment held at 1.8 million, accounting for 25.3% of all unemployed people.
Total nonfarm payroll employment rose by 115,000 in April, according to the latest report from the Bureau of Labor Statistics (BLS). That’s a significant improvement over February’s revised loss of 156,000 jobs, but well short of March’s upwardly revised gain of 185,000. Both prior months absorbed revisions this cycle: February dropped 23,000 and March gained 7,000, leaving the two combined 16,000 lower than previously reported.
Health care led April with 37,000 new jobs, consistent with its 12-month average of 32,000 per month. Transportation and warehousing added 30,300, but the sector has fallen 105,000 since its February 2025 peak, and retail trade added 22,000 jobs.
Federal government employment lost another 9,000 jobs in April, and federal payrolls have contracted by 348,000 since October 2024, down 11.5%. Information employment lost 13,000, and manufacturing shed 2,000 jobs over the month.
Temporary help services added nearly 8,000 jobs in April, and March was revised up to 5,300, from the 4,400 initially reported. Back-to-back gains are a modestly encouraging signal. Context matters, though. The broader professional and business services category grew by just 7,000 total in April, meaning temp help accounted for essentially all of it. That’s a narrow uptick in contingent labor within a category that is otherwise flat.
Other highlights from the April BLS report include:
- The unemployment rate held at 4.3%, with 7.4 million people unemployed, little changed from March.
- Unemployment rates showed little change across major demographic groups: adult men (4.0%), adult women (3.9%), teenagers (14.4%), White (3.7%), Black (7.3%), Asian (3.3%), Hispanic (5.0%).
- The labor force participation rate was 61.8%, and the employment-population ratio was 59.1%. Both edged down over the year after population control adjustments.
- Part-time employment for economic reasons rose by 445,000 to 4.9 million. These workers wanted full-time hours but couldn’t get them.
- Long-term unemployed (27 weeks or more) held at 1.8 million, accounting for 25.3% of all unemployed people.
- Short-term unemployed (fewer than 5 weeks) increased by 358,000 to 2.5 million.
- Average hourly earnings rose 6 cents, or 0.2%, to $37.41, up 3.6% over the past 12 months.
- The average workweek edged up 0.1 hour to 34.3 hours.
Private employers post the strongest month since January 2025
ADP’s National Employment Report showed private employers added 109,000 jobs in April, the fastest pace in 15 months and a significant step up from March’s revised total of 61,000.
“Small and large employers are hiring, but we’re seeing softness in the middle,” said Dr. Nela Richardson, chief economist at ADP. “Large companies have resources to deploy, and small ones are the most nimble, both important advantages in a complex labor environment.”
Small businesses (fewer than 50 employees) drove 65,000 of April’s gains. Large employers (500 or more) contributed 42,000. Mid-sized companies, those with 50 to 499 employees, added just 2,000 combined. Mid-market firms are typically the growth engine for contingent staffing demand, and right now they’re in a holding pattern.
By sector, education and health services led at +61,000. Trade, transportation, and utilities added 25,000. Construction gained 10,000, and financial activities contributed 9,000. Professional and business services was the month’s only major drag, losing 8,000 jobs.
Pay for job-stayers rose 4.4% year-over-year in April. Job-changers saw 6.6% gains. The premium for switching employers is still there, but it’s holding steady rather than widening. For staffing agencies tracking candidate motivation to move, that gap is worth noting. It tends to soften before broader demand does.
