Private Sector Adds 109,000 Jobs in April, Led by Education and Health Services

In April, U.S. private sector employment increased by 109,000 jobs, surpassing economists' expectations of a 99,000-job gain, according to the latest report from payroll processing firm ADP. The previous month's figure was revised down to a gain of 61,000 jobs from an initially reported 62,000.

The education and health services sector led the job creation, adding 61,000 positions. Trade, transportation, and utilities followed with 25,000 new jobs, while construction and financial activities added 10,000 and 9,000 jobs, respectively. Leisure and hospitality, along with the information sector, each saw an increase of 4,000 jobs, and natural resources and mining added 3,000 positions. Manufacturing experienced a modest gain of 2,000 jobs.

Conversely, professional and business services reported a loss of 8,000 jobs, and the 'other services' category decreased by 1,000 positions.

Regarding company size, large businesses with 500 or more employees added 42,000 jobs. Medium-sized businesses, those with 50 to 499 employees, saw a modest increase of 2,000 jobs. Small businesses, with fewer than 50 employees, contributed significantly by adding 65,000 jobs.

Wage growth showed a slight deceleration in April. Employees who remained in their roles experienced a 4.4% increase in pay compared to the previous year, while those who changed jobs saw their pay rise by 6.6%, maintaining the same rate as the prior month.

ADP's chief economist, Nela Richardson, commented on the hiring trends, stating,

"Small and large employers are hiring, but we're seeing softness in the middle. Large companies have resources to deploy, and small ones are the most nimble, both important advantages in a complex labor environment."

Heather Long, chief economist at Navy Federal Credit Union, observed,

"The U.S. labor market appears to be stabilizing. That's the first step in a recovery. Job gains in April were the strongest since January 2025, according to ADP. Even smaller firms that were hit hard by tariffs last year are finally hiring again. Health care is still responsible for the majority of hiring, but a few other industries are starting to add headcount as well. The official April Jobs Report on Friday is likely to show solid job gains and potentially a drop in the unemployment rate."