ADP: March Private-Sector Employment Up 200,000

Ahead of Friday’s Labor Department jobs report, ADP, Roseland, N.J., said private sector employment increased by 200,000 jobs in March, down slightly from February’s revised 205,000.

The ADP National Employment Report said small businesses (1-50 employees) added 86,000 jobs, up from 68,000 in February; medium businesses (50-499 employees) added 75,000 jobs, up from February’s 60,000; but large businesses added just 39,000 jobs, half of February’s 77,000. By sector, service-providing employers added 191,000 jobs while goods-producing employers added 9,000. The financial services sector added 14,000 jobs.

“The trade, transportation and utilities sector had its best month of employment gains since last June,” said Ahu Yildirmaz, vice president and head of the ADP Research Institute. “Steady employment growth and accelerating wage growth in the workforce appear to be benefitting the trade segment in particular.”

“The job market continues on its amazing streak,” said Mark Zandi, chief economist of Moody’s Analytics. The March job gain of 200,000 is consistent with average monthly job growth of the past more than four years. The only industry reducing payrolls is energy as has been the case for over a year. All indications are that the job machine will remain in high gear.”

The Labor Department said over the past three months, job gains have averaged 228,000 per month. The unemployment rate is currently 4.9 percent, the lowest rate in seven years.