US private sector employment surpassed expectations in April, as per a report by Reuters on Wednesday, with revisions upward for the previous month. The ADP Employment report revealed a gain of 192,000 jobs in the private sector last month, following an upwardly revised 208,000 in March. Economists surveyed by Reuters had anticipated an increase of 175,000 jobs in April, compared to the previously reported 184,000 in March. The ADP report, produced in collaboration with the Stanford Digital Economy Lab, precedes the more comprehensive and closely watched employment report by the Labour Department, scheduled for release on Friday. Historically, the ADP report has tended to overstate labour market slowdowns compared to official employment data. On Wednesday, Federal Reserve officials are anticipated to maintain the current benchmark overnight interest rate in the range of 5.25-5.50 per cent, unchanged since July. Since March 2022, the policy rate has been raised by 525 basis points. Market expectations for a rate cut have shifted from June to September. While some economists predict a potential reduction in borrowing costs by July, citing an anticipated slowdown in the labour market, others believe the window for Fed easing may be closing. According to a Reuters survey, the Labour Department's Bureau of Labour Statistics is expected to report a rise of 190,000 private sector jobs in April, following a 232,000 increase in March. Total nonfarm payrolls are estimated to have grown by 243,000 jobs, compared to a rise of 303,000 in March. The unemployment rate is forecasted to remain unchanged at 3.8 per cent, with annual wage growth expected to ease to 4.0 per cent from 4.1 per cent in March.
