By Arlenys Tabare
According to a report presented this Wednesday by the payroll processing company ADP, Private sector companies in the United States added 109,000 jobs in April, exceeding the estimates of economists, who anticipated an increase of only ninety nine,000 more jobs.
In this regard, Nela Richardson, chief economist at ADP, commented in the report that “Both small and large companies are hiring, but we see weakness in the intermediate sector. Large companies have resources to deploy, while small companies are the most agile; both are important advantages in a complex work environment,” he said.
Although in recent months the labor market had been weak and tight with a pronounced wave of layoffs and a stagnation in hiring, specialists such as Heather Long, chief economist at Navy Federal Credit ranking Union, consider that currently the labor sector appears to be stabilizing. “That is the first step towards recovery,” he mentioned.
The data presented by ADP indicated that at the beginning of the second quarter of this year, job creation has been stronger even compared to January of last year, with the health sector being the one that has had the most boom. Therefore, economists consider that the official report by the Department of Labor, scheduled for this Friday, show solid figures of an increase in employment and possible fall in the unemployment rate.
What are the areas where there was the most and least hiring?
Regarding the sectors that had the highest hiring, they are education and health services with 61,000 jobs; Commerce, transportation and public services added 25,000, while construction and financial activities added 10,000 and 9,000 more workers respectively.
For its part, the leisure and hospitality sector, which in recent years had been one of the largest sources of employment, also added 4,000 jobs; natural resources, mining and manufacturing added 3,000 and 2,000 more jobs.
Nevertheless, Professional and business services eliminated 8,000 jobs. The majority of layoffs during the first quarter of the year could be observed in companies in the technology sector, which reduced their workforce as they increased investments in AI to improve their operations and reduce costs.
Finally, the ADP analysis detailed that wage growth during the month of April stagnated, falling slightly compared to March.
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