The Bureau of Labor Statistics (BLS) will release its official April 2013 jobs report on Friday.
ADP’s April National Employment Report, released Thursday morning, raises concern that Friday’s figure may be disappointing. U.S. private-sector employment increased by only 119,000 jobs in April, the lowest monthly gain since September 2012. More worrisome, the manufacturing sector cut 10,000 jobs last month, all but reversing the effect of 12,000 new manufacturing jobs added in February and March.
According to ADP, job growth slowed most significantly among companies that employ between 20 and 499 workers. Mark Zandi, chief economist of Moody’s Analytics, said, “Tax increases and government spending cuts are beginning to hit the job market.”
Business Insider cautions that ADP’s report is not a perfect predictor of the official BLS jobs report.
Nonetheless, stocks fell yesterday after the disappointing reading on employment. The Dow Jones Industrial Average fell 139 points, or 0.94%, to close at 14,701. The S&P 500 lost 15 points, or 0.93 percent, to close at 1,583.