U.S. Private Sector Job Growth Surpasses Expectations

The U.S. private sector added 155,000 jobs in March, surpassing economists' forecasts of 115,000 to 120,000, according to ADP's National Employment Report. Job additions were distributed across small, medium, and large establishments, with small establishments contributing the most. Manufacturing sectors saw strong job gains for the second month, while construction hiring slowed, and sectors like trade, transportation, and utilities experienced job losses. Annual pay increased by 4.6%, although pay growth for job-stayers slowed, and job-changers saw a 6.5% pay rise. Despite concerns about economic slowdown and policy uncertainties, this job growth suggests a robust labor market. These ADP figures precede the Bureau of Labor Statistics' report on nonfarm payrolls, which includes government jobs, and upcoming tariffs could impact future hiring.