U.S. private businesses added 184,000 workers during March, an improvement on February’s upwardly revised gain of 155,000, said payrolls processing firm ADP. This indicates continuing steadiness in the labor market as private sector job growth expands at it’s fastest rate since July 2023.
Additionally, wages for employees who remained in their jobs went up 5.1% from a year ago. Those who changed jobs gained an average of 10%, higher than in previous months.
“March was surprising not just for the pay gains, but the sectors that recorded them,” said Nela Richardson, ADP’s chief economist. “Inflation has been cooling, but our data shows pay is heating up in both goods and services.”
The leisure and hospitality industry led the gains with 63,000, while construction saw 33,000. Professional and business services lost 8,000. Small businesses added just 16,000 workers, while the majority of the gains came from organizations with more than 500 workers.
