US 'Small Non-Farm' Payrolls Exceed Expectations in April

The US labor market showed a complex and divergent growth trend in April.

A report released jointly by the ADP Research Institute and the Stanford Digital Economy Lab on May 6th showed that the number of employed individuals in the private sector of the United States increased by 109,000 in April, exceeding the market's previous expectation of 99,000. This figure set the fastest growth rate since January 2025.

Looking at the industry distribution, the service sector remains the main force driving employment. The education and health services industry performed the strongest, with 61,000 new jobs added in a single month. Trade, transportation, and utilities followed closely behind, contributing to 25,000 new employment opportunities.

In contrast, the professional and business services sector experienced contraction. The industry lost 8,000 jobs in April, reflecting that some white-collar industries are facing pressure in the current economic environment.

The performance differences between enterprise sizes are also worth noting. Small businesses are the most active in hiring, adding 65,000 positions. Large enterprises also added 42,000 jobs, showing that top companies still have ample expansion resources.

However, medium-sized enterprises seem relatively weak in this round of recruitment. These companies only slightly increased by 2,000 jobs, and companies with a workforce of 250 to 499 people even experienced a net loss of positions.

ADP Chief Economist Nela Richardson pointed out that the hiring market is showing characteristics of "soft in the middle, hard at both ends." Small businesses survive in complex environments with flexibility, while large companies continue to expand relying on substantial financial power.

In terms of wages, the wage inflation pressure in the labor market is slowly being released. The year-on-year wage growth for retainees slightly slowed to 4.4%. The wage increase for job changers remained at 6.6%, unchanged from the previous month.

The market will next pay attention to the non-farm employment report released on May 8th. Investors need to observe whether there is a significant deviation between ADP data and official data to further confirm the true cooling speed of the labor market.