The U.S. private sector added 155,000 jobs in March, according to the latest ADP National Employment Report. This figure reflects a steady pace of hiring, with notable contributions from large employers, which added 59,000 positions, and mid-sized businesses, which accounted for 43,000 new roles. Small businesses also played a role, contributing 52,000 jobs, primarily from firms with fewer than 20 employees.
Year-over-year pay gains showed a slowdown, with job-stayers seeing a 4.6% increase and job-changers experiencing a 6.5% rise. This marks a continued trend of moderation in wage growth, with the pay premium for job-changers narrowing to a series low of 1.9 percentage points. The manufacturing sector demonstrated resilience, adding 21,000 jobs, while professional and business services led the way with 57,000 new positions. However, trade, transportation, and utilities saw a decline, losing 6,000 jobs.
The Federal Reserve’s recent economic projections included upward revisions, reflecting expectations of slower growth and higher inflation by year-end. Despite these challenges, ADP’s Chief Economist, Nela Richardson, emphasized the positive aspects of the March report, stating that it was a “good one for the economy and employers of all sizes, if not necessarily all sectors.”
ADP steady at 155k. Upward Fed revisions.
YoY pay gains slowed to 4.6% for job-stayers and to 6.5% for job-changers.
"Despite policy uncertainty and downbeat consumers, the bottom line is this: The March topline number was a good one for the economy and employers of all sizes,… pic.twitter.com/JtybUTHnLn
— Mike Zaccardi, CFA, CMT 🍖 (@MikeZaccardi) April 2, 2025
Sources:
https://www.jpmorgan.com/insights/outlook/economic-outlook/fed-meeting-march-2025