U.S. jobs growth still tepid

Two sets of economic statistics closely watched by economists showed mixed signs of jobs growth in the U.S. Wednesday.

A private trade group, the Institute for Supply Management, said employment in the American service sector expanded in April, but at a slower pace than expected.

The ISM, a trade group of purchasing executives, said its service sector employment index read 55.4 in April, the same level as in March. That was its fourth straight month of growth.

But economists polled by Thomson Reuters had expected a stronger reading of 56. Anything above 50 indicates growth.

The service sector accounts for 80 per cent of U.S. jobs in areas such as health care, retail and financial services. 

At the same time, payroll company ADP said private employers added 32,000 jobs last month.

That was better than the 30,000 jobs economists had forecast.

A fuller picture of U.S. job creation — including public sector jobs — will come on Friday, when the Labour Department releases unemployment data for April.

It is widely expected to report that the unemployment rate was unchanged at 9.7 per cent, and that employers added 200,000 jobs.