Private sector struggles with only 62,000 jobs added in April

In April 2025, the private sector in the United States added only 62,000 jobs, a figure that significantly fell short of economists' expectations of 115,000. This was a notable decline from March's job growth of 155,000. The leisure and hospitality industries led the way with the addition of 27,000 positions, while trade, transportation and utilities contributed 21,000 jobs. Other sectors, such as financial activities and construction, also saw job gains, contributing 20,000 and 16,000 jobs, respectively. Conversely, several sectors experienced job losses. Education and health services saw a decrease of 23,000 jobs, while the information sector lost 8,000 positions. Professional and business services, along with other services, also reported modest declines. Large businesses added a total of 12,000 jobs, but businesses with fewer than 50 employees contributed a more significant increase, with 11,000 jobs added in their sector. This current employment trend raises concerns among economists about the overall strength of the labor market and the broader economy. The broader economic context indicates that employment growth is slowing down, which is reflective of increased uncertainty in policy and consumer confidence. According to ADP’s chief economist, Nela Richardson, employers are struggling to make hiring decisions amid these challenges. Compounding this uncertainty are recent economic policies, particularly tariffs introduced by the Trump administration, which have raised concerns about their effects on job growth and the overall economic climate. While current job growth remains positive, the data suggests that risks to the labor market have increased compared to just a few months prior. Economists are forecasting a further slowdown in job growth, with estimates varying significantly. These conditions could lead to an inability to sustain the current pace of economic recovery which could manifest in increased job cuts in the near future. In April, high-profile job cut announcements have surged, suggesting that employers are adopting a cautious outlook amid declining confidence levels among business owners and consumers alike.