US Private Payroll Growth Hits 10-Month Low Amid Economic Uncertainty

US Private Employers Add Just 62,000 Jobs in April Amid ‘Difficult’ Hiring Environment

On April 30, 2025, data from ADP revealed that private employers in the United States added only 62,000 jobs in April, marking the smallest increase since July 2024.

This figure fell significantly short of economists’ expectations of 115,000 jobs and was a sharp decline from the 147,000 jobs added in March. The hiring slowdown reflects growing uncertainty among employers as they navigate policy changes and consumer unease.

Private Employers Struggle Amid Economic Uncertainty

The hiring environment in April was described as “difficult” by ADP Chief Economist Nela Richardson, who stated, “Unease is the word of the day.

US private employers add just 62,000 jobs in April amid 'difficult' hiring environment https://t.co/2qHiwWq0kw pic.twitter.com/lPRmQsZHPb

— Yahoo Finance (@YahooFinance) April 30, 2025

Employers are trying to reconcile policy and consumer uncertainty with a run of mostly positive economic data. It can be difficult to make hiring decisions in such an environment.” This sentiment underscores the challenges faced by businesses in balancing optimism with caution.

Job Growth Slows Across Sectors

While some sectors experienced moderate hiring, others saw declines. Leisure and hospitality posted the largest gain, adding 27,000 jobs, followed by trade, transportation, and utilities with 21,000 jobs.

However, education and health services lost 23,000 positions, and information services fell by 8,000. These mixed results highlight the uneven recovery in the labor market.

Regional Variations in Employment Growth

Employment growth varied across regions, with the Midwest leading the way by adding 42,000 jobs. In contrast, the South saw minimal growth, with only 3,000 jobs added. These disparities reflect differing economic conditions and challenges across the country.

Wage Growth Shows Mixed Results

Wage growth presented a mixed picture in April. Median pay gains rose by 4.5% for workers who stayed in their jobs, while job changers saw a higher increase of 6.9%. Despite these gains, the overall hiring rate remained steady at 3.4%, indicating a cautious approach by employers.

Looking Ahead: Labor Market Remains Fragile

Economists warn that the labor market is in a “fragile stasis,” vulnerable to disruptions from policy changes and economic uncertainty. The upcoming government jobs report, set to be released on May 2, 2025, will provide further insights into the state of employment in the U.S.