US private sector employment rises more than expected in April - ADP

Private sector employment in the US rose more than expected in April, according to data released by ADP on Wednesday.

Employment increased by 296,000 from March, versus expectations for a 148,000 jump. The figures also showed that annual pay was up 6.7% year-over-year.

Small businesses with fewer than 50 employees added 121,000 jobs, while medium businesses with between 50 and 499 employees added 122,000 jobs Large business with more than 500 employees added 47,000 jobs.

The service sector created 229,000 jobs, while the goods-producing sector saw a 67,000 increase.

Nela Richardson, chief economist at ADP, said: "The slowdown in pay growth gives the clearest signal of what's going on in the labour market right now.

"Employers are hiring aggressively while holding pay gains in check as workers come off the sidelines. Our data also shows fewer people are switching jobs."