Private employers add 296K jobs, well above expectations

Hiring by private companies in the U.S. heated up in April, beating projections as federal officials attempt to use interest rates to cool down the economy and fight inflation.

Private payrolls increased by 296,000 in April, according to the latest report by ADP, beating Dow Jones projections by more than 100,000 jobs and marking a rapid heating up from the 142,000 added in March.

The Federal Reserve has continued to raise interest rates in a bid to slow rising prices. The Fed even raised rates as fears over a string of bank collapses raised concerns over the continued hikes.

The economy has added more than 800,000 jobs this year, according to ADP, signaling a resilient labor market. But the increase to annual pay rates did decrease a bit, with the annual rate rising 6.7 percent over the past year after it had steadily been at 7 percent.

The biggest gain in employment in April came in the service industry. Specifically, around 154,000 jobs were added in the leisure and hospitality sector. The manufacturing sector suffered the biggest losses, losing 38,000 jobs. 

The financial sector, facing upheaval with the fall of a number of financial institutions last month, lost 28,000 jobs.

Democrats and the White House have faced heavy criticism for inflation. The moves by the Fed to raise rates were meant to tame job growth and economic activity, but the private job numbers show the labor market is not cooling as quickly as expected.