, according to payroll processor ADP, which notes that prolonged inflation and the resulting central bank policy could be starting to temper growth in the red-hot labor market.
The rate of hiring has"tempered across all industries," ADP Chief Economist Nela Richardson said in a Wednesday statement, calling small businesses in particular a"source of concern as they struggle to keep up with larger firms that have been booming as of late." Job loss was worst among businesses with less than 20 employees, which saw employment fall by 78,000 workers in April, while medium businesses and large businesses added 97,000 and 122,000 jobs, according to ADP.
In another sign of weakness, ADP revised its estimate for the number of private-payroll jobs added in April to 202,000 from 247,000, with Richardson pointing to the tight labor market and elevated inflation as main catalysts for weakness. In emailed comments, analyst Adam Crisafulli of Vital Knowledge Media called the report"bad for the economy, but good for markets," noting the moderation in job creation, which tends to fuel inflation, is likely to put the Federal Reserve at ease as it continues raising interest rates.The Labor Department's monthly jobs report, which tracks employment across the public and private sectors, is slated for release Friday morning. Economists forecast the U.S.