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ADP Says Companies Add Fewest U.S. Workers in Seven Months

Bloomberg (05/02/12) Shobhana Chandra

Private-sector payrolls increased 119,000 in April, led by the service-providing sector and small and medium businesses, according to the ADP employment report released today. The median forecast of economists surveyed by Bloomberg News called for a 170,000 advance. The March level was revised to a gain of 201,000 from a prior estimate of 209,000.

Companies may remain hesitant about expanding their work force until they see more evidence that the gains in consumer spending, which accounts for about 70% of the economy, will be sustained. “Employment growth is slowing,” says David Sloan, an economist at 4Cast Inc. in New York. “The economy is growing at a fairly slow pace, though it’s sustainable.”