According to a report from ADP, U.S. private payrolls increased by 155,000 jobs in March, surpassing the expected 120,000. This marks a significant acceleration from the upwardly revised 84,000 jobs added in February. The report shows that wage growth for those staying in their positions rose by 4.6% year over year.
Job changers saw an even higher increase of 6.5%. The gap between these figures matched a series low. Hiring was widespread across various sectors.
Professional and business services added 57,000 workers, while financial activities grew by 38,000 as tax season began. The manufacturing sector contributed 21,000 jobs, and leisure and hospitality added 17,000 positions. In total, services accounted for 132,000 of the job gains.
Private sector job growth acceleration
However, not all sectors experienced growth. Trade, transportation, and utilities lost 6,000 jobs, and natural resources and mining saw a reduction of 3,000 positions.
The strong private payroll gains in March counter concerns about a slowing labor market and economy. Recent data from the Bureau of Labor Statistics (BLS) shows that the number of open positions nearly matches the number of available workers. This is a reversal from the trend a couple of years ago when job openings outnumbered unemployed individuals by 2 to 1.
The ADP report precedes the more closely monitored BLS measure of nonfarm payrolls, which includes government jobs. The upcoming BLS report is expected to show payroll growth of 140,000 in March, slightly down from 151,000 in February. Disparities among figures often occur due to differing methodologies.
Despite the strong job growth numbers, broader economic concerns could impact hiring decisions in the coming months.
Photo by The Jopwell Collection; Unsplash