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ADP says US private sector added 191,000 payrolls in March

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ADP says US private sector added 191,000 payrolls in March

Job growth in the US private sector accelerated in March, a sign the labour market was recovering from a weather-induced slowdown that dampened hiring this winter.

Private payrolls last month rose at a seasonally adjusted pace of 191,000, following a revised February gain of 178,000, the ADP Institute reported today. The figure, which was slightly above the 12-month average, narrowly missed forecasts calling for 195,000.

Similar to the previous two months, job growth in March was mainly concentrated in the service economy. Service providers added 164,000 payrolls in March, up from a revised 153,000 gain the prior month. Employment in professional and business services increased by 53,000, while trade, transportation and utilities gained 36,000, ADP data showed. Employment in financial services increased by 5,000, the strongest monthly gain since November 2013.

Goods-producers added 28,000 payrolls in March, up from an upwardly revised pace of 25,000 the previous month. Among goods-producers, job creation was concentrated mainly in the construction sector, which added 20,000 payrolls. The manufacturing sector added 5,000 jobs, the same as February.

“The job market is coming out from its deep winter slumber,” said Moody’s Analytics chief economist Mark Zandi in a press release. “Job gains are consistent with the pace prior to the brutal winter. The gains are broad based across industries and business size classes. Even better numbers are likely in coming months as the weather warms.”

Job creation was led by small businesses, which added 72,000 payrolls last month. Medium-sized enterprises added 52,000 and large businesses 67,000.

The Labor Department is scheduled to release official nonfarm payroll data Friday. Official data could show the US economy added 196,000 jobs in March and the unemployment rate dropped from 6.7 percent to 6.6 percent, according to forecasts.

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