Private employers added 109,000 jobs in April, topping most forecasts. But the headline masks important differences across company size and sector. Job growth was strongest among small and large businesses, while mid-sized firms added very few jobs, showing signs of softness.
What’s the bottom line?
ADP Chief Economist Dr. Nela Richardson explains that large companies have more resources to invest, while small businesses benefit from flexibility, giving both an edge in today’s complex labor market. However, she noted that many small business roles tended to be part-time or lower paying. Hiring was also concentrated in a few sectors, led by education and health services, which tend to be more stable during economic slowdowns. Regarding pay growth, workers who change jobs are still seeing faster wage growth (6.6%) than those who stay put (4.4%), but the gap has narrowed compared to recent years. In other words, the job market is becoming less competitive overall.