On Wednesday, ADP, a payroll processing company, announced that job growth within the private sector of the United States exceeded expectations in March.
According to ADP, the private sector saw a surge of 184,000 jobs in the month, a significant increase from February's total of 155,000 jobs — a figure that itself had been revised upwards. Prior to this announcement, economists had predicted a lower leap, speculating that only 148,000 jobs would be added, a slight rise from the 140,000 reported in the previous month.
The unexpected spike in job growth was primarily driven by the leisure and hospitality industry, which added a substantial 63,000 jobs in March. The gains spanned numerous industries, excluding the professional services sector, which experienced a decrease of 8,000 jobs.
The report also highlighted that annual pay growth maintained a consistent rate of 5.1% for individuals who stayed in their current roles, whilst individuals who switched jobs witnessed a remarkable acceleration in annual pay growth, skyrocketing to 10%.
ADP Chief Economist, Nela Richardson, expressed surprise at the results, drawing particular attention to the industries recording these gains. "The top three increases for job-changers were seen in the construction, financial services, and manufacturing sectors," she stated. Additionally, she noted a peculiar contrariety in current market trends — whilst inflation has been stabilising, pay rates in both services and goods sectors are escalating.
The official monthly employment report will be released by the Labor Department this Friday, consolidating data from both public and private sectors. Economists are currently predicting a further rise in employment by 200,000 in March, following February's massive surge of 275,000. The unemployment rate is expected to remain at 3.9%.
