US Private Payrolls Rose 109,000 in April

U.S. private-sector payrolls rose by 109,000 in April 2026, the highest monthly gain since January 2025, according to data released Wednesday by ADP Research. The increase followed a revised 61,000 advance in March and provided fresh evidence of a labor market finding its footing after a difficult stretch.

April's figure fell short of the median estimate in a Bloomberg survey of economists, which called for a 120,000 increase, but topped the Dow Jones consensus estimate of 84,000. Education and health services added 61,000 jobs in April, accounting for more than half of the total hiring advance.

Trade, transportation and utilities added 25,000 jobs while construction gained 10,000, a rise that may reflect building of data centers tied to artificial intelligence investment.

Financial activities added 9,000 jobs, manufacturing 2,000, leisure and hospitality 4,000 and information services 4,000. Professional and business services lost 8,000 jobs. Companies with fewer than 50 employees added 65,000 jobs.

Those with 500 or more employees added 42,000. S. 1 percentage point from the prior month.

The data pointed to a low-hire, low-fire environment in which companies remain reluctant to lay off workers but have pared back hiring significantly. Nela Richardson, ADP's chief economist, said small and large employers are hiring but there is softness in the middle. "Small and large employers are hiring, but we're seeing softness in the middle," Richardson stated.

She added that large companies have resources to deploy and small ones are the most nimble, both important advantages in a complex labor environment. The ADP figures come days after the Federal Open Market Committee voted last week to keep its key interest rate unchanged.

That vote saw an unusually high four dissents, including three from officials who favored removing language from the post-meeting statement that indicated the Fed's next move would be a rate cut.

The report offers mixed signals for policymakers weighing persistent inflation pressures against a stabilizing labor market. Trade, transport and utilities payrolls increased in April while construction employment grew. The labor market has shown positive momentum after an especially harsh year for hiring, with layoffs remaining low across the economy.

Some employers appear more willing to add headcount amid greater clarity around tariff, immigration and fiscal policies.