The US Jobs market continues to recover from the coronavirus pandemic as US private payrolls increased the most in seven months in April.
According to data released from payroll processing firm ADP, 742,000 people took on nonfarm jobs in the private sector in April, the largest monthly gain since September 2020.
The results of the closely-watched survey suggest its progress still has some way to go. Last month’s figures were 58,000 lower than market expectations, after the previous month’s number was revised up by 48,000 to 565,000.
Gus Faucher, chief economist at PNC Financial (NYSE:PNC) in Pittsburgh, Pennsylvania said:
“The job market is picking up steam in the spring as consumers are more comfortable going out given vaccinations and stimulus checks,”
Although the figures fell below market expectations, the shortfall was small enough and the overall figures strong enough that Wednesday’s economic news is unlikely to change many market opinions on the pace of the U.S. economy’s recovery.
Leisure and Hospitality Industry Leads the Way in Growth
Leading the growth in jobs was the Leisure and hospitality industry. The leisure and hospitality industry was the sector most hurt by pandemic-related business lockdowns. The embattled sector saw 237,000 new positions in April.
The Leisure and hospitality industry are still down around 3 million jobs from where it was before the pandemic. However, the industry has been adding jobs at a steady rate since federal and state governments have started to relax restrictions.
The goods-producing industries also enjoyed a strong April adding 106,000 jobs as manufacturing saw 55,000 new hires. Construction added 41,000 and natural resources and mining payrolls rose by 10,000.
