U.S. Private Sector Job Growth Accelerated Sharply in March -- ADP
March 31 2021 - 9:04AM
Dow Jones News
By Xavier Fontdegloria
The nonfarm private sector in the U.S. accelerated its hiring in
March, creating the best monthly job growth since last September,
signaling the economy is roaring back as virus cases drop and
vaccinations ramp up.
Total U.S. nonfarm private employment increased by 517,000 in
March, data from ADP National Employment Report showed Wednesday.
Economists polled by The Wall Street Journal were expecting
payrolls to rise by a similar 525,000.
In February, the U.S. private sector registered a gain of
176,000 jobs, up from an initial estimate of 117,000.
"We saw marked improvement in March's labor market data,
reporting the strongest gain since September 2020," said Nela
Richardson, chief economist at ADP.
Medium businesses, between 50 and 499 employees, are the ones
which added the most jobs with an increase of 188,000. Small
businesses, with a maximum of 49 employees, registered 174,000
payroll gains and large businesses, those of at least 500 workers,
created 155,000 jobs.
The service-providing sector created 437,000 jobs, particularly
in the leisure and hospitality sector, which added 169,000 jobs.
The goods-producing sector gained 80,000 jobs, the data showed.
"Job growth in the service sector significantly outpaced its
recent monthly average ... This sector has the most opportunity to
improve as the economy continues to gradually reopen and the
vaccine is made more widely available," Ms. Richardson said.
"We are continuing to keep a close watch on the hardest hit
sectors but the groundwork is being laid for a further boost in the
monthly pace of hiring in the months ahead," she said.
The report, carried out by the ADP Research Institute along with
Moody's Analytics, is based on data through the 12th of the
month.
The U.S. Department of Labor is expected to release its March
employment report, which covers the same period as the ADP National
Employment Report, on Friday. Economists are expecting it to show
nonfarm payrolls up by 675,000 for the month and the unemployment
rate down to 6%.
Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com
(END) Dow Jones Newswires
March 31, 2021 08:49 ET (12:49 GMT)
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