Private sector adds 155,000 jobs in March, exceeding expectations

In March 2025, the private sector in the United States made notable job gains, with companies adding 155,000 positions according to payroll processing firm ADP. This figure surpassed economists' predictions of 115,000 jobs and was significantly higher than the previous month's upwardly revised total of 84,000. Despite the ongoing challenges posed by policy uncertainty and consumer sentiment, which have been notably downbeat, the overall employment figures were encouraging for the economy. ADP's chief economist, Nela Richardson, stated that the March numbers reflect positive trends for employers across various sectors, although not uniformly. Job creation in March was predominantly led by professional and business services, which accounted for 57,000 new positions. Additionally, the financial sector contributed 38,000 jobs, while manufacturing and the leisure and hospitality industries added 21,000 and 17,000 jobs, respectively. However, not all sectors experienced growth; trade, transportation, and utilities saw a decrease of 6,000 jobs, and natural resources and mining lost 3,000 jobs during the same timeframe. The report also revealed that large businesses, defined as those with 500 or more employees, were responsible for creating 59,000 jobs, while those with 50 to 499 employees hired 43,000 workers. Smaller establishments, employing fewer than 50 individuals, added 52,000 jobs. March's report was particularly significant as it became public prior to the Labor Department's forthcoming nonfarm payrolls data, which is scheduled for release on the following Friday. The expectations for the government report indicated a likely increase of 135,000 positions, signaling a positive shift compared to the 151,000 jobs reported in February. The data from the Bureau of Labor Statistics mentioned a broader increase of 228,000 jobs, including both the private sector growth and a decline in government employment. Despite the overall job growth, the unemployment rate remained steady at 4.2%, with approximately 7.1 million individuals still unemployed. In the governmental sector, job losses continued but at a slower pace, with 4,000 federal jobs disappearing in March, down from 11,000 in February. This trend of decreased government employment is attributed to ongoing efforts focused on downsizing government roles and reinstating work standards like returning to in-office requirements. The job figures, highlighting considerable growth in nonfarm payroll jobs, have provided optimism for the administration under President Donald Trump as it attempts to promote its economic restructuring policies to the public. White House press secretary Karoline Leavitt claimed that the statistics reflect the successful implementation of President Trump's tariffs and trade strategies, further asserting that this momentum signifies a resurgence of opportunity in the United States economy.