Private sector employment in the United States increased by 109,000 jobs in April 2026, marking the fastest pace of hiring since early 2025. According to the latest ADP National Employment Report, produced in collaboration with the Stanford Digital Economy Lab, the labor market remains resilient despite shifting dynamics across different company sizes. While hiring accelerated, pay growth for job-stayers showed a slight cooling trend, settling at 4.4% year-over-year.
Private employers added 109,000 jobs in April, the strongest growth since January 2025.
Education and health services led the gains, contributing 61,000 new positions.
Pay growth for job-stayers slowed to 4.4%, while job-changers saw steady 6.6% gains.
Small establishments (1-49 employees) led hiring by size, adding 65,000 jobs.
The West region emerged as the primary geographical driver with 46,000 new roles.
Professional and business services saw a decline, shedding 8,000 positions.
The service-providing sector was the primary engine of growth in April, accounting for 94,000 of the total jobs added. Within this category, trade, transportation, and utilities saw a notable rebound with 25,000 new jobs. Conversely, the professional and business services sector experienced softness, reporting a loss of 8,000 positions. In the goods-producing sector, construction led with 10,000 new roles, while manufacturing remained relatively flat with a gain of 2,000.
Geographically, hiring was strongest in the West (46,000) and the South (34,000), while the Midwest saw more modest gains of 11,000. This regional distribution reflects a continued concentration of labor demand in high-growth coastal and southern markets.
"Small and large employers are hiring, but we're seeing softness in the middle," said Dr. Nela Richardson, chief economist, ADP. "Large companies have resources to deploy, and small ones are the most nimble, both important advantages in a complex labor environment."
Pay growth continues to provide a nuanced picture of the labor market. While the 4.4% increase for job-stayers represents a slight deceleration, the 6.6% premium for job-changers suggests that competition for talent remains active in specific pockets. Notably, financial activities reported the highest pay growth for stayers at 5.1%.
Establishment size played a critical role in April's figures. Small businesses (1-19 employees) were particularly active, adding 43,000 jobs. Large firms with over 500 employees also showed strength, contributing 42,000 roles. Medium-sized firms, specifically those with 250-499 employees, struggled, posting a loss of 3,000 positions.
The revision of March’s data from 62,000 to 61,000 jobs added indicates a stable, albeit moderate, upward trajectory heading into the second quarter of 2026. As health care and transportation sectors continue to fuel acceleration, economists will be monitoring whether the "softness in the middle" observed by ADP spreads to other establishment sizes or remains localized.
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