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U.S. Private Sector Hiring Holds Steady in March, Driven by Small Businesses
April 1 – Private sector employment in the United States showed stability in March, supported primarily by small business hiring, according to the latest ADP National Employment Report released Wednesday.
Small enterprises with fewer than 20 employees led the gains, adding 112,000 jobs last month. Mid-sized companies, employing between 250 and 499 workers, contributed a modest increase of 6,000 jobs. However, other business sizes saw declines: firms with 20 to 49 employees cut 27,000 jobs, while those with 50 to 249 employees reduced payrolls by 26,000.
“Overall hiring remains steady, though job growth continues to be concentrated in select sectors, notably health care,” said Nela Richardson, ADP’s chief economist. “March also saw an encouraging rise in wages for individuals changing jobs.”
By industry, education and health services led payroll growth with an addition of 58,000 jobs, marking the second consecutive month these sectors fueled gains. Conversely, the trade, transportation, and utilities sector trimmed 58,000 jobs, tempering service sector expansion.
On the goods side, construction experienced the strongest growth, adding 30,000 jobs, while natural resources and mining saw a smaller increase of 11,000 jobs. Manufacturing, however, shed 11,000 positions.
Wage growth for job-switchers accelerated to 6.6% in March, up 0.3 percentage points from February. Employees remaining in their current roles saw average wage gains of 4.5%.
The U.S. Bureau of Labor Statistics is scheduled to release its March nonfarm payrolls report on Friday, which will include the latest unemployment rate. In February, the unemployment rate stood at 4.4%.