Businesses hired at a mediocre pace last month, according to an
employment survey released Wednesday.
Private payrolls in the U.S. increased by 189,000 jobs in March,
said the national employment report compiled by payroll processor
Automatic Data Processing Inc. and forecasting firm Moody's
Analytics.
The number was far below expectations. Economists surveyed by
The Wall Street Journal projected ADP would say 225,000 new jobs
were added in March. The February ADP increase was revised 214,000
from 212,000.
"Job growth took a step back in March. The fallout from the
collapse in oil prices and surge in value of the dollar is hitting
the job market" the report said.
The ADP report is one of a few private-sourced job reports that
come out ahead of the Bureau of Labor Statistics' employment
situation report scheduled for Friday.
Economists expect the BLS will report March nonfarm
payrolls--which include government positions--increased by 248,000
positions, down from an unexpectedly large 295,000 slots created in
February. Winter weather, however, might hold down March job
gains.
The March unemployment rate is forecast to hold at 5.5%.
According to ADP, small businesses remain the engine of job
growth. Firms employing between 1-49 workers added 108,000 new
workers last month. Medium-size businesses with payrolls of 50-499
workers added 62,000 employees. Large firms with 500 or more
employees hired only 19,000 more workers.
Manufacturing cut 1,000 jobs in March, said ADP. The service
sector hired 184,000 new employees. Construction payrolls increased
by 17,000.
Write to Kathleen Madigan at kathleen.madigan@wsj.com
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