Private payrolls increased by 184,000 in March, better than expected, ADP says

Private
sector
job
growth
expanded
in
March
at
its
fastest
pace
since
July
2023,
indicating
continuing
buoyance
in
the
U.S.
labor
market,
payrolls
processing
firm
ADP
reported
Wednesday.

Companies
added
184,000
workers
on
the
month,
an
increase
from
the
upwardly
revised
February
gain
of
155,000,
which
also
was
the
Dow
Jones
estimate
for
March.

In
addition
to
the
strong
employment
pickup,
ADP
reported
that
wages
for
workers
who
stayed
in
their
jobs
increased
5.1%
from
a
year
ago,
the
same
rate
as
February
after
showing
a
steady
easing
going
well
back
into
2023.
Those
switching
jobs
saw
gains
of
10%,
also
higher
than
in
previous
months.

“March
was
surprising
not
just
for
the
pay
gains,
but
the
sectors
that
recorded
them,”
said
ADP’s
chief
economist,
Nela
Richardson. “Inflation
has
been
cooling,
but
our
data
shows
pay
is
heating
up
in
both
goods
and
services.”

Job
gains
were
fairly
broad-based,
led
by
leisure
and
hospitality
with
63,000.
Other
sectors
showing
significant
increases
included
construction
(33,000),
trade,
transportation
and
utilities
(29,000),
and
education
and
health
services
(17,000).
Professional
and
business
services
saw
a
loss
of
8,000.

Services-related
industries
accounted
for
142,000
of
the
total,
with
goods
providing
the
rest.
ADP,
whose
survey
is
based
on
payroll
data
analysis
of
more
than
25
million
workers,
does
not
track
government
jobs.

Most
of
the
growth
came
from
companies
that
employ
more
than
50
workers,
with
small
businesses
adding
just
16,000
to
the
total.
From
a
regional
standpoint,
the
South
saw
the
biggest
gains,
adding
91,000
workers.

The
ADP
estimate
serves
as
a
precursor
to
the
Labor
Department’s
nonfarm
payrolls
survey,
set
to
be
released
Friday,
though
the
numbers
often
diverge
sharply.
The
department’s
Bureau
of
Labor
Statistics
reported

job
growth
of
275,000
in
February,
or
120,000
more
than
even
ADP’s
revised
figure.
Economists
surveyed
by
Dow
Jones
expect
the
March
count
to
show
growth
of
200,000.

Solid
payroll
growth
along
with
improving
inflation
has
allowed
the
Federal
Reserve
to
be
patient
in
its
approach
to
easing
monetary
policy.
Central
bank
officials
expect
to
start
cutting
interest
rates
later
this
year
but

have
said
in
recent
days
that
they
haven’t
seen
enough
evidence
yet
that
inflation
is
on
a
sustained
path
lower
to
begin
reductions.