Private Sector Job Growth Surpasses Expectations in March

The private sector added 62,000 jobs in March, according to a report released by payroll processing firm ADP on Wednesday. This figure exceeded economists’ estimates, which projected an increase of 40,000 jobs.

February’s Numbers Revised Higher

ADP also revised its February job growth numbers upwards. The previous month’s payrolls were adjusted to a gain of 66,000 jobs, an increase from the initially reported 63,000.

Industry Breakdown: Healthcare Leads Gains

Sector Performance

Education and health services experienced the most significant gains, adding 58,000 positions. Other sectors contributing to job growth included construction with 19,000 jobs, information with 16,000, and natural resources and mining with 11,000.

  • Leisure and hospitality: +7,000 jobs
  • Financial activities: +4,000 jobs
  • Other services: +4,000 jobs
  • Professional and business services: +1,000 jobs

Job Losses in Certain Sectors

Conversely, some sectors experienced job losses. Trade, transportation, and utilities saw a decline of 58,000 jobs, while manufacturing lost 11,000 positions in March.

Business Size and Wage Growth

Impact by Company Size

Job gains were concentrated in smaller businesses. Establishments with fewer than 50 employees added 85,000 jobs. However, larger businesses (500+ employees) lost 4,000 jobs, and mid-sized businesses (50-499 employees) shed 20,000 workers.

Wage Trends

Wage growth remained relatively stable in March. Employees who remained in their current roles experienced a 4.5% pay increase year-over-year. Those who changed jobs saw a slightly larger increase, with pay gains rising to 6.6% from 6.3% in February, according to Nela Richardson, ADP chief economist.

“Overall hiring is steady, but job growth continues to favor certain industries, including health care,” Richardson stated. “In March, this solid performance was accompanied by a boost in pay gains for job-changers.”