PhotoApril saw a noticeable slowdown in the creation of private sector jobs.

The ADP National Employment Report shows that employers hired 177,000 workers last month, following a strong March, which saw creation of a downwardly revised 255,000 payroll positions.

April's gain was the smallest since last October when there were just 62,000 new jobs.

The slowdown in job growth is attributed to a pullback in construction and retail jobs, according to Moody's Analytics Chief Economist Mark Zandi.

“The softness in construction is continued payback from outsized growth during the mild winter,” he said. “Brick-and-mortar retailers cut jobs in response to withering competition from online merchants.”

Who was hiring

Medium businesses -- those with 50-499 employees -- were responsible for most of the hiring, adding 78,000 jobs. That sector was followed by small businesses (+61,000) and large businesses (+38,000)

As is usually the case, most of the new jobs -- 165,000 -- were created in service-providing industries -- with professional/business services adding 72,000 positions, followed by administrative/support services (+53,000), education/health services (+41,000), leisure/hospitality (+ 35,000), and health care/social assistance (+22,000).

Goods-producing firms added 12,000 payroll positions, with 11,000 hires in manufacturing and 3,000 in natural resources/mining. Construction lost 2,000 jobs.

"Despite a dip in job creation, the growth is more than strong enough to accommodate the growing population as the labor market nears full employment,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “Looking across company sizes, midsized businesses showed persistent growth for the past six months.”

The ADP National Employment Report, which is derived from ADP's actual payroll data, is produced by the ADP Research Institute in collaboration with Moody's Analytics. 

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