American companies added a further 119,000 jobs during March, considerably lower than economist projections. Despite and notable uptick from the previous months, the job market still appears to be struggling through the ongoing spring lull.
The general consensus among economists had been for 150,000 job additions across the private sector.
“Job growth appears to be slowing in response to very significant fiscal headwinds,” spoke Moody’s Analytics chief Mark Zandi, one of the firms responsible for the official ADP jobs report.
“Tax increases and government spending cuts are beginning to hit the job market.”
This Friday, the Labor Department is expected to announce the addition of 148,000 jobs in total for March, which accounts for city, state and federal government jobs along with the private sector.
The report posted by the ADP this Wednesday showed that the biggest job gains for April came from the transport and trade sectors with a combined total of 29,000 jobs. Construction jobs were added to the tune of 15,000 and business/professional services saw the addition of 20,000.
By contrast, manufacturing jobs were down by 10,000.
SMEs performed relatively strongly according to the report, which stated that small businesses saw the addition of 50,000 jobs, medium-sized businesses added 26,000 and larger businesses 43,000.
Economic recovery appeared to hit a bump in the road as of late, following not only disappointing job additions but also a relatively insignificant fall in the unemployment rate from 7.7% to 7.6%.
Overall economic growth for the first quarter of the year was confirmed at 2.5% by the government, which is again considerably below expectations. The slowdown didn’t come as a surprise to economists however as such a lull was largely expected on the back of recent payroll tax hikes and wide-reaching cuts in federal spending.