Apr 2, 2025, 8:22 AM
Apr 2, 2025, 8:22 AM

Private sector adds 155,000 jobs in March

Highlights
  • In March 2025, the private sector added 155,000 jobs according to ADP.
  • Job creation was led by professional and business services with 57,000 positions added.
  • Overall, the March job growth indicated a positive trend for the economy despite existing uncertainties.
Story

In March 2025, companies in the private sector in the United States experienced significant job growth, as revealed by the payroll processing firm ADP. They reported an increase of 155,000 jobs, surpassing economists' expectations of 115,000 jobs. This report represents a substantial improvement from February's upwardly revised growth of 84,000 jobs, emphasizing a positive shift in the labor market. Despite facing challenges such as policy uncertainty and consumer pessimism, Nela Richardson, ADP's chief economist, characterized this March data as favorable for the economy and various employers. A closer look at the job creation sectors reveals that professional and business services led the way, adding 57,000 positions. Financial activities contributed with 38,000 new jobs, manufacturing saw a rise of 21,000 jobs, and the leisure and hospitality sector saw an addition of 17,000 jobs. However, not all sectors fared well; trade, transportation, and utilities lost 6,000 jobs, while natural resources and mining experienced a decline of 3,000 jobs. The job growth in March reflects a diversified hiring trend across different business sizes as well. Large businesses, defined as those with 500 or more employees, added 59,000 jobs. Mid-sized businesses, with 50 to 499 employees, hired an additional 43,000 workers, while small establishments with fewer than 50 employees contributed 52,000 jobs to the total count. This data underscores the collaborative effort across various business sizes to boost employment amidst challenging economic conditions. The ADP job report serves as a precursor to the government's nonfarm payroll data, which is scheduled for release shortly after and may provide further insight into the labor market. Economists expect the government data will also reflect an increase in jobs, reporting an anticipated 135,000 positions. The continued trend of job creation is seen as vital for sustaining economic growth in the United States, especially as concern grows over potential market instabilities due to ongoing policy debates and shifts in consumer confidence.

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