After reporting weaker than expected job growth in the previous month, payroll processor ADP released a report on Wednesday showing private sector employment jumped by much more than anticipated in the month of April.
ADP said private sector employment surged up by 275,000 jobs in April after climbing by an upwardly revised 151,000 jobs in March.
Economists had expected employment to increase by about 180,000 jobs compared to the addition of 129,000 jobs originally reported for the previous month.
"April posted an uptick in growth after the first quarter appeared to signal a moderation following a strong 2018," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.
She added, "The bulk of the overall growth is with service providers, adding the strongest gain in more than two years."
The report said employment in the service-providing sector jumped by 223,000 jobs, reflecting notable increases in professional/business services, leisure/hospitality, and healthcare/social assistance jobs.
The goods-producing sector also added 52,000 jobs during the month, as employment in the construction sector climbed by 49,000 jobs.
ADP said employment at mid-sized businesses shot up by 145,000 jobs, while employment at small and large businesses rose by 77,000 jobs and 53,000 jobs, respectively.
"The economic soft patch at the start of the year has not materially impacted hiring," said Mark Zandi, chief economist of Moody's Analytics. "April's job gains overstate the economy's strength, but they make the case that expansion continues on."
On Friday, the Labor Department is scheduled to release its more closely watched monthly employment report, which includes both public and private sector jobs.
Employment is expected to increase by 180,000 jobs in April following the addition of 196,000 jobs in March, while the unemployment rate is expected to hold at 3.8 percent.
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December 19, 2025 15:10 ET U.S. inflation data and interest rate decisions by major central banks were the highlights of this busy week for economics news flow. Employment data and survey results on the housing markets also gained attention in the U.S. In Europe, the European Central Bank and Bank of England announced their policy decisions and macroeconomic projections.