The U.S. private sector added just 62,000 jobs in April, a disappointing figure that fell far short of economists’ projections of 115,000 and marked a steep drop from March’s 155,000 jobs. The data, released Wednesday by payroll processing firm ADP, comes as the American economy shows signs of slowing under the weight of new trade and tariff policies that are reshaping global markets.
The jobs report reveals a mixed picture. While the leisure and hospitality sector led job creation with 27,000 positions, followed by trade, transportation, and utilities with 21,000, and financial activities with 20,000, several key industries suffered losses. Education and health services shed 23,000 jobs, information lost 8,000, and professional and business services declined by 2,000. These losses highlight growing uncertainty among employers who are facing rising costs and navigating a volatile policy landscape.
ADP’s chief economist noted that despite generally positive economic indicators in other areas, businesses are struggling to reconcile consumer unpredictability and policy shifts, particularly in light of tariffs. Those concerns are compounded by a 0.3% contraction in the U.S. economy during the first quarter of 2025, marking a reversal from the 2.4% growth seen at the end of last year. While some observers attribute the downturn to global realignment caused by tariffs, others point to deeper systemic issues amplified by policy changes.
Small businesses—those with fewer than 50 employees—added 11,000 jobs, while mid-sized businesses created 40,000. Large companies with 500 or more employees saw a modest gain of 12,000 jobs. These modest figures, however, fall short of the hiring pace needed to sustain healthy economic momentum or match population growth.
The Labor Department’s broader jobs report, due Friday, is expected to show a gain of 130,000 jobs—well below March’s increase of 228,000—raising further concern about whether job creation can keep pace with economic needs. Meanwhile, Americans are adjusting expectations, trimming wage hopes for new positions amid the uncertainty, as sectors like construction and manufacturing experience only modest gains.
