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ADP Employment: Continued Strong Gains

May 5, 2021
Bottom Line:   ADP reported sharp gains in April.  Though lower than expected, there were positive revisions to March data that accounted for about half of the miss.  Overall, the report was solid, leaving the potential for strong gains in the national employment report due Friday but limiting the potential that total nonfarm payrolls in April are stronger than the 995k expected.  Leisure and hospitality jobs led ADP's report, up 169k, while the trade and transportation sector added 92k.   Higher-paying sectors like construction and manufacturing also continued to add jobs and have seen a slight acceleration in the pace of gains in 2021.
ADP National Employment ROSE by 742k in April, compared with the consensus estimate for a gain of 850k.  Meanwhile, the revisions to the prior 3 months added an additional 52k to the previous estimate. Over the past 12 months, private payrolls have increased by an average of 947k per month, lifting employment to 10.4% ABOVE its year-ago level. 
Jobs in Goods-Producing Industries
ROSE by 106k jobs as Manufacturing gained 55k workers. Moreover, Construction gained 41k jobs.  
Service-Producing Industries
ROSE by 636k jobs with Professional/Business Services hiring 105k workers, Trade/Transport/Utilities adding 155k, and Financial Activities increasing by 11k workers. 
Small Firms hired 235k workers, Medium-Sized Firms grew by 230k employees while Large Firms added 277k positions.