Private payrolls in the US surpassed expectations in April.

A report released on Wednesday revealed that private payrolls in the United States grew beyond expectations in April, with upward revisions made to data for the previous month.

According to the ADP Employment report, private payrolls expanded by 192,000 jobs in the previous month, following an upwardly revised increase of 208,000 in March. Economists surveyed by Reuters had predicted private employment to rise by 175,000 last month, compared to the initially reported 184,000 in March.

The ADP report, a collaborative effort with the Stanford Digital Economy Lab, was issued before the Labor Department’s anticipated release of the more thorough and closely monitored employment report for April, scheduled for Friday.

It tends to overstate the deceleration in the job market in contrast to the official employment figures. Federal Reserve officials are anticipated to maintain the U.S. central bank’s benchmark overnight interest rate at its current range of 5.25%-5.50%, a level it has held since July, during their meeting later on Wednesday.

Since March 2022, they have hiked the policy rate by 525 basis points. Expectations for a rate cut this year have been postponed by financial markets from June to September.

Some economists persist in their belief that borrowing costs could be reduced in July, anticipating a significant slowdown in the labor market shortly. However, others perceive the opportunity for the Fed to initiate its easing cycle as diminishing.

In a Reuters survey of economists, it is anticipated that the Labor Department’s Bureau of Labor Statistics will announce that private payrolls increased by 190,000 jobs last month, following a rise of 232,000 in March.