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ADP predicts moderate job increase in April

But construction jobs set to decrease

Employment is set to increase in April, however construction jobs could see a decrease, according to the ADP National Employment Report.

Jobs are predicted to increase by 177,000 for the month, according to the report. While this is down from last month’s predicted increase of 263,000, it is up significantly from March’s actual jobs increase of just 98,000.

And while the ADP report doesn’t have the best record when it comes to predicting employment, even the street’s estimate was far above the actual jobs increase in March.

This chart shows ADP’s changes in nonfarm private employment over the past year:

Click to Enlarge

ADP

(Source: ADP, Moody’s Analytics)

“Admittedly, that 177,000 gain represents a six-month low for the ADP series,” Capital Economics Chief Economist Paul Ashworth said. “But, with the unemployment rate down to only 4.5%, there is no way that employment could continue to expand at in excess of 200,000 per month.”

Unlike previous predictions, this one shows construction jobs will decrease in April during a time when low housing inventories make new construction more needed than ever.

The goods-producing sector is set to increase by 12,000 with changes in the following areas:

Natural resources and mining: Increase 3,000

Construction: Decrease 2,000

Manufacturing: Increase 11,000

And the service-providing sector is predicted to see job gains of about 165,000 with changes in these areas:

Trade, transportation and utilities: Increase 5,000

Information: Increase 1,000

Financial activities: Increase 2,000

Professional and business: Increase 72,000

Education and health: Increase 41,000

Leisure and hospitality: Increase 35,000

Other services: Increase 9,000

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