The monthly ADP private sector jobs report came in hotter than anticipated.
Markets were ticking higher Wednesday after a solid private sector jobs report for the month of March, offsetting pre-market losses due to looming tariffs.
The U.S. economy added 155,000 private sector jobs in March, according to the ADP National Employment Report. This was much better than economists expected, as the consensus called for 120,000 new jobs. It was also up nearly double the February jobs numbers, which saw only 84,000 jobs created, revised up from 77,000.
The ADP jobs reports just calculate private sector jobs. The Bureau of Labor Statistics will release its jobs report for March on Friday. This includes both public and private sector jobs. Economists expect to see 140,000 jobs added and a 4.1% unemployment rate.
The ADP report lifted markets, which were trending slightly higher on Wednesday, erasing earlier pre-market losses. It was a promising sign that corporations have not slowed hiring due to anticipated tariff costs or concerns about the economy or inflation.
“Despite policy uncertainty and downbeat consumers, the bottom line is this: The March topline number was a good one for the economy and employers of all sizes, if not necessarily all sectors,” Nela Richardson, chief economist at ADP, said.
Manufacturing jobs increase
Among goods producing jobs, 21,000 manufacturing jobs were added, which is stronger-than-average. That’s up from 18,000 in February. Meanwhile, construction job creation slowed a bit with 6,000 jobs added, down from 26,000 in February. Natural resources/mining produced 3,000 fewer jobs. Overall, 24,000 goods-producing jobs were added in March.
On the services side, 132,000 jobs were created, with most coming from financial activities (38,000) and professional/business services (57,000). Also, education/health services added 12,000 while leisure/hospitality produced 17,000. Trade, transportation and utilities lost 6,000 jobs.
The Northeast added the most jobs, 89,000, led by New England with 57,000. The Midwest added 81,000 jobs while the South generated 27,000. The West lost 41,000 jobs.
Pay increased by 4.6% for job-stayers and 6.5% for job changers, both of which were down from the previous month. Those in the financial industry saw their pay jump 5.3%, the biggest increase of any sector.
Pay at large firms, over 500 employees, increased 4.9% while medium-sized firms with 250 to 499 employees increased employees’ pay by 5% year-over-year. Small firms with 1-19 employees saw the lowest pay gains, 2.9%.
