ADP Reports Private Sector Adds 62,000 Jobs in March, Exceeding Expectations

• Small businesses (fewer than 50 employees) drove hiring with 85,000 jobs added, while medium and large firms reduced headcount by 20,000 and 4,000 respectively
• Wage growth remained at 4.5% for workers staying in their current positions, while job changers saw 6.6% wage increases, up 0.3 percentage points from February
• The report precedes Friday's BLS nonfarm payrolls release, which is forecast to show 59,000 jobs added after February's reported loss of 92,000

ADP Employment Report Summary - March 2026

Key Figures

• Private sector jobs added: 62,000 in March
• Consensus estimate: 39,000 (Dow Jones)
• February revised total: 66,000 (up from previous estimate)
• Wage growth: 4.5% for job stayers; 6.6% for job changers (up 0.3 percentage points)

Sector Performance

Top Contributors:

• Education and health services: +58,000 (matching February's total)
• Construction: +30,000
• Information services: +16,000
• Natural resources and mining: +11,000
• Leisure and hospitality: +7,000

Decliners:

• Trade, transportation, and utilities: -58,000
• Manufacturing: -11,000

Company/Sector Highlights

The healthcare total benefited from resolution of a Kaiser Permanente strike that had affected over 30,000 workers in Hawaii and California during the prior month.

Employment by Company Size

• Small businesses (<50 employees): +85,000
• Medium-sized firms: -20,000
• Large firms (500+ employees): -4,000

Market Implications

The report shows modest but better-than-expected private sector job growth, though momentum remains concentrated in just two sectors. The rare balance between goods-producing (30,000) and service-sector jobs (32,000) is notable in a services-dominated economy. Small business hiring strength contrasts with weakness at larger firms, suggesting potential fragmentation in the labor market.

The BLS nonfarm payrolls report, due in two days, is expected to show 59,000 jobs added with unemployment holding at 4.4%, following February's loss of 92,000 jobs.