ADP employment report shows addition of 10,000 jobs in April

A labor report from ADP Employer Services on Wednesday showed an increase in employment in April but still offered evidence of weakness in manufacturing and construction as the housing market remains sluggish.

The report from ADP Employer Services, a unit of payroll processor Automatic Data Processing Inc., showed that U.S. companies added 10,000 jobs in April.

However, the results still show a sharp deceleration in employment, said Joel Prakken, chairman of Macroeconomic Advisers, which partners with ADP on the report.

"This report emphatically demonstrates that employment has ground to a halt," Prakken said in an interview.

The report showed large employment losses in the manufacturing and construction industries, offering little evidence that a contraction in either sector is over, Prakken said. Employers cut 26,000 manufacturing jobs and 28,000 construction jobs, according to the report.

Record-high foreclosures have been dragging down the sagging housing market, as U.S. consumers continue to battle tighter credit and rising gas prices.

Although companies added 2,000 jobs in the financial sector in April, Prakken said this is still far below average. "I don't expect to see rapid growth in this sector anytime soon," Prakken said.

Small businesses added 42,000 jobs during the month, but Prakken said this segment isn't typically concentrated in manufacturing and construction. Companies that fall in this group include those that have no more than 49 employees.

"Small firms do not have as much overhead that can be pared down or downsized," Prakken said.

The ADP report comes several days ahead of Friday's government data on the job market.

Staffing stocks were mixed in midday trading. On Assignment Inc. declined 7 cents to $7.22. Cross Country Healthcare Inc. rose 8 cents to $12.10.

Manpower Inc. declined 22 cents to $67.78, and Korn/Ferry International Inc. rose 22 cents to $18.71.

TrueBlue Inc. rose 6 cents to $13; Hudson Highland Group Inc. rose 10 cents to $9.05; and Kelly Services Inc. rose 84 cents, or 3.9 percent, to $22.57.