WRAPUP 2-US private sector jobs rise first time since 2008

* Jobs in private sector increased by 32,000 in April-ADP

* Pace of growth in services sector unchanged in April

* Challenger report shows drop in planned layoffs in April

(Refiles to add graphics links)

NEW YORK, May 5 (BestGrowthStock) – Signs of a recovery in the U.S.
labor market grew on Wednesday as data on the private sector
labor market showed job gains for the first time since January
2008.

Other data showed the pace of growth in the U.S. services
sector was unchanged in April compared with the month before
and expanded below the rate forecast by analysts.
[ID:nN05259918]

The private sector added 32,000 jobs in April, according to
a report by payrolls processor ADP Employer Services on
Wednesday. Economists had expected a rise of 30,000 jobs, based
on a Reuters poll. For details, see [ID:nEAP103001]

But the February and March private sector ADP figures were
revised to show gains instead of losses. The last time the
private sector registered job gains was in January 2008,
according to ADP.

The ADP report comes two days ahead of the more closely
watched U.S. government jobs data. Another report on Wednesday
showed planned layoffs in April fell to their lowest in nearly
four years.

“Private sector employment growth is another encouraging
sign the labor market is turning the corner and the last pillar
of the recovery looks to be now in place,” Zach Pandl,
economist at Nomura Securities International in New York.

Job growth is considered key to sustaining the economic
recovery.

The government’s monthly jobs report, due Friday, is
forecast to show nonfarm payrolls increased by 200,000 in
April, adding to the prior month’s 162,000 gain, according to a
Reuters’ forecast. The unemployment rate, however, is expected
to remain unchanged at 9.7 percent for a fourth month.

Government department recruitment to run the U.S. census,
held every ten years, will likely account for the bulk of the
payrolls gain in April, with private sector hiring expected to
pull back from March’s spectacular 123,000 increase.

U.S. stock prices declined, while U.S. Treasury yields
fell, and the euro fell (Read more about the trembling euro. ) against the U.S. dollar, after the data
was published, amid continued worries about Greece’s debt
problems.

The Institute for Supply Management said its services index
was at 55.4 in April, the same in March but below the 56.0
median forecast of 74 economists surveyed by Reuters. A reading
above 50 indicates expansion.

The ISM report’s employment component fell slightly to 49.5
from 49.8 the prior month.

“It implies the services sector of the economy continues to
expand, but at a slow pace,” said Hugh Johnson, chief
investment officer of Johnson Illington Advisors in Albany, New
York.

Other data on Wednesday showed the number of planned
layoffs at U.S. firms fell more than 40 percent in April to the
lowest level in nearly four years, suggesting employers are
more confident about economic conditions.

Employers announced 38,326 planned job cuts last month, the
lowest since July 2006 and down from 67,611 planned job cuts in
March, according to the report from global outplacement
consultancy Challenger, Gray & Christmas, Inc.

Meanwhile, Mortgage Bankers Association (MBA) data showed
demand for loans to buy U.S. homes hit a seven-month high last
week.

Home purchase loan applications jumped 13 percent in the
week ended April 30 to the highest level since early October,
overshadowing a 2.1 percent drop in refinancing demand. Total
mortgage applications rose by a seasonally adjusted 4 percent,
the trade group reported.

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For links to graphics:

U.S. private employment:

The private sector added more jobs than expected in April
in advance of Friday’s payrolls data:
http://link.reuters.com/pyd72k

U.S. mortgages:

Demand for loans to buy homes hits 7-mo. High as the tax
credit ends, but refinancing’s down:
http://link.reuters.com/myb72k
U.S. services:
The services sector’s expansion flattened in April
http://link.reuters.com/xug72k

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Investing Analysis
(Reporting by Caroline Valetkevitch, with additional reporting
by Burton Frierson, Edward Krudy, Lynn Adler and Chuck
Mikolajczak)

WRAPUP 2-US private sector jobs rise first time since 2008