Private companies added 155,000 jobs in March, significantly exceeding expectations as outlined in the latest report from the ADP Research Institute. This figure represents a notable increase from February’s upwardly revised total of 84,000 jobs, suggesting a strengthening labor market despite ongoing economic concerns.
Today’s new job creation crushed the Dow Jones projection of just 120,000 jobs. This increase highlights an important change in hiring trends. As firms navigate economic uncertainty, particularly regarding President Donald Trump’s aggressive tariff policies, the employment landscape appears to be evolving. These tariffs have caused a panic among affected businesses about possible repercussions on their employment-related decisions.
The ADP results should be more than a wake-up call though. The next Bureau of Labor Statistics (BLS) jobs report—unofficially forecasting a 140,000 payroll loss in March. This projection would be a sharp drop from February’s numbers, which were 151,000. The difference between the ADP and BLS nonfarm payrolls measures has come to within spitting distance. It now equals a new series low, set just last month in September.
By June 2023 the Bureau of Labor Statistics reported that job openings were almost equal to the supply of workers. This alignment is a positive response to great shifts in the labor market. That’s a dramatic departure from just a few years ago when openings exceeded the ranks of unemployed one-to-two. Yet, that current balance signals a more competitive labor market for employers.
The ADP report gives us some insight into sectors fueling job growth in March. By industry, professional and business services led the way, adding 57,000 new jobs. In the other category, financial activities grew by 38,000 as tax season starts to kick in. Manufacturing had a hand in the growth, lifting 21,000 jobs, and leisure and hospitality added 17,000 positions.
The service providers were responsible for the majority of the work creation, with 132,000 of the recently added positions. However, not all sectors experienced growth. All of this was overshadowed by the 6,000 job loss in the trade, transportation, and utilities sector. In contrast, natural resources and mining experienced the largest decrease, shedding 3,000 jobs.