U.S. private-sector employers added 155,000 jobs in March, with wage growth for job-stayers continuing to decelerate, according to data released Wednesday by ADP Research Institute in collaboration with the Stanford Digital Economy Lab.
The monthly snapshot, based on payroll data from more than 25 million workers, showed moderate job growth and a 4.6 percent year-over-year increase in pay for employees who remained in their roles—down from previous months. Job-changers saw annual pay gains of 6.5 percent, matching the lowest level since September.
“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, if not necessarily all sectors,” said Nela Richardson, chief economist at ADP.
Growth uneven across sectors and regions
The manufacturing sector led goods-producing industries with 21,000 new positions, while construction added 6,000 jobs. Natural resources and mining lost 3,000 jobs.
Among service-providing sectors, professional and business services posted the largest gains with 57,000 jobs, followed by financial activities with 38,000. Leisure and hospitality added 17,000 positions. However, trade, transportation, and utilities lost 6,000 jobs.
Regionally, the Northeast saw the most robust growth, adding 89,000 jobs, including 57,000 in New England. The Midwest followed with 81,000 new positions. The South added 27,000 jobs, while the West saw a decline of 41,000, driven by losses in both the Pacific and Mountain regions.
Small and large firms continue to hire
Job creation was spread across firm sizes. Large employers, those with more than 500 workers, added 59,000 jobs. Small firms, particularly those with fewer than 20 employees, contributed 52,000 jobs. Mid-sized firms added 43,000.
Pay gains narrow for job-changers
The wage premium for job-changers narrowed to 1.9 percentage points, matching a series low, as pay increases for job-switchers slowed in nearly all sectors. Financial activities saw the strongest median pay gains for job-stayers at 5.3 percent, while information services lagged at 4.0 percent.
Pay growth also varied by firm size. Workers at small firms with fewer than 20 employees saw the lowest gains at 2.9 percent. Those at medium and large firms experienced higher increases, at or near 5.0 percent.
The ADP report, which is released monthly, offers an independent view of the U.S. labor market. February’s employment gain was revised upward to 84,000 jobs from an earlier estimate of 77,000.
