A relatively weak 119,000 jobs were added to private employers' payrolls last month as federal spending cuts and tax increases began to bite, according to the latest ADP National Employment Report.
And there was more potentially troubling news about the health of the economy in Wednesday's data: ADP, which provides payroll and other services to companies around the world, revised down its estimate of U.S. job growth in March. It now says private employers added 131,000 jobs to their payrolls that month, not the initial figure of 158,000.
In the ADP report, Moody's Analytics economist Mark Zandi says:
"Job growth appears to be slowing in response to very significant fiscal headwinds. Tax increases and government spending cuts are beginning to hit the job market. Job growth has slowed across all industries and most significantly among companies that employ between 20 and 499 workers."