Private sector hiring totaled 62,000 in March, better than expected, ADP says

• Trade, transportation and utilities shed 58,000 workers, and manufacturing lost 11,000 jobs, offsetting gains in other sectors
• Wage growth remained steady at 4.5% for workers staying in their jobs, while job changers saw 6.6% wage gains, up 0.3 percentage points from February
• The report comes ahead of the BLS nonfarm payrolls release, which is expected to show 59,000 jobs added with unemployment holding at 4.4%

Summary: Private Sector Hiring Beats Expectations in March

Key Figures:

Private sector employment increased by 62,000 jobs in March, exceeding the Dow Jones consensus estimate of 39,000, according to ADP's latest report. This represents a modest decline of 4,000 from February's upwardly revised figure.

Sector Performance:

Job gains were heavily concentrated in two sectors:

• Education and health services: Added 58,000 jobs (identical to February's contribution)
• Construction: Contributed 30,000 positions

Other positive sectors included information services (+16,000), natural resources and mining (+11,000), and leisure and hospitality (+7,000).

Job Losses:

Trade, transportation, and utilities shed 58,000 workers, while manufacturing declined by 11,000 jobs.

Company Size Distribution:

Small businesses (under 50 employees) drove hiring with 85,000 new jobs, while medium-sized firms lost 20,000 and large employers (500+ employees) decreased by 4,000.

Wage Growth:

Workers remaining in their positions saw steady wage growth of 4.5%, while job switchers experienced 6.6% gains, up 0.3 percentage points from February.

Market Context:

The rare balance between goods-producing (30,000) and service sector (32,000) job creation stands out in a services-dominated economy. This report precedes the Bureau of Labor Statistics' nonfarm payrolls data, expected Friday, with forecasts of 59,000 jobs added and unemployment holding at 4.4%.

Implications:

The better-than-expected hiring suggests moderate labor market resilience, though concentration in healthcare and construction indicates uneven sector momentum. The decline in large employer hiring may signal caution among major corporations.