A new ADP report reveals that private payrolls in the U.S. grew way less than expected last month.

According to ADP's latest report, payrolls only grew by 169,000 in April, which is lower than the 200,000 new private sector jobs that economists had predicted. This is also lower than the 175,000 payroll growth that occurred in March. This means that U.S. private employers in April hired the fewest number of workers since January 2014.

As a result, the private job gains combined with a second straight quarterly decline in productivity significantly lower the chances that the U.S. Federal Reserve will raise interest rates in June as had been expected at the beginning of the year.

"The weakness of productivity is another reason to believe that the Fed will begin to raise interest rates in the second half of this year," said Paul Ashworth, chief U.S. economist at Capital Economics in Toronto, to Reuters.

"The data pile onto recent evidence suggesting increased odds that, by the time the June policy meeting rolls around, the hope of a great spring rebound in real growth will have faded," added Steve Blitz, chief economist at ITG Investment Research in New York.

"Fallout from the collapse of oil prices and the surging value of the dollar are weighing on job creation. Employment in the energy sector and manufacturing is declining. However, this should prove temporary and job growth will reaccelerate this summer," wrote Mark Zandi, chief economist at Moody's Analytics, in ADP's report, according to the Business Insider.

According to the ADP report, small businesses with 49 or fewer employees had the strongest job creation and grew by 94,000 in April.

Companies with 50 to 499 people on payroll saw a 70,000 increase, while companies with over 1,000 employees added just 5,000 jobs last month.

In addition, the report shows that hiring slowed down in many different industries, including manufacturing which saw a loss of 10,000 jobs after eliminating 3,000 positions in March.