ADP private payrolls plunge to 3-year low

Thomson Reuters

US private payrolls increased by 156,000 in April, the lowest level in three years, according to ADP Research Institute.

Economists had forecast that the report would show a gain by 195,000, according to Bloomberg. ADP revised its print for March down to 194,000 from 200,000.

This report comes ahead of the Labor Department’s official numbers on Friday.

Employment in the goods-producing sector shrank by 11,000, while service-producing companies added 166,000 payrolls.

“Despite the softest overall monthly jobs added in three years, small businesses remained an engine for job growth in April,” said Ahu Yildirmaz, VP and head of the ADP Research Institute, in the release.

“Smaller businesses are less susceptible to global conditions, such as low commodity prices and the strong dollar, that may have caused larger businesses to ease up on hiring.”