Private Employers Added 155,000 Jobs in March, ADP Report Shows

Job growth accelerated in March, with financial and professional sectors leading gains while annual pay increases continued to slow.

A "Now Hiring" sign outside Taylor Party and Equipment Rentals in Somerville, Mass., on Sept. 1, 2022. Brian Snyder/Reuters

Private employers added 155,000 jobs in March, signaling continued strength in the U.S. labor market despite signs of moderation in wage growth, according to the ADP National Employment Report released on April 2.

The monthly snapshot, based on anonymized payroll data from more than 25 million workers, showed job creation across most sectors of the economy, though some industries and regions posted losses.

The report indicated that annual pay growth for job stayers—workers who remained with their employers—slowed to 4.6 percent, down from recent months, while job changers saw an average increase of 6.5 percent.

“Despite policy uncertainty and downbeat consumers, the bottom line is this: The March topline number was a good one for the economy and employers of all sizes, if not necessarily all sectors,” ADP’s chief economist, Nela Richardson, said.

The service-providing sector led the way with 132,000 new jobs, while goods-producing employers added 24,000 positions.

Financial activities and professional and business services were the strongest contributors to the service-providing sector, with 38,000 and 57,000 jobs added, respectively. Manufacturing posted a solid gain of 21,000 jobs, continuing a two-month trend of stronger-than-average hiring.

Construction hiring slowed month over month, with employers adding just 6,000 jobs in March, down from 26,000 the previous month, according to ADP. Natural resource positions lost 3,000 jobs. Trade, transportation, and utilities saw a net loss of 6,000 jobs.

Regionally, the Northeast and Midwest experienced the strongest growth, adding 89,000 and 81,000 jobs, respectively. In the South, gains were more modest, at 27,000 jobs added, while the West saw a net decline of 41,000, driven largely by losses in the Pacific region.

By establishment size, large companies with more than 500 employees added the most jobs at 59,000. Small businesses contributed 52,000 new jobs, while mid-sized companies added 43,000.

Pay increases for job stayers were strongest in manufacturing (4.8 percent) and financial activities (5.3 percent), while workers at the smallest businesses—those with fewer than 20 employees—saw the weakest annual pay growth at 2.9 percent.

For job changers, the average increase of 6.5 percent matched the series low last seen in September, indicating a potential cooling in labor market churn.

The ADP figures were also seen as an encouraging sign in a week of heightened market volatility. Wall Street investors closely watched for signals ahead of President Donald Trump’s major tariff announcement on Wednesday afternoon.

The S&P 500 and Dow Jones Industrial Average clawed back gains after the ADP report’s release, as investors digested the possibility that March’s labor strength might help buffer economic uncertainty tied to looming tariffs.

The ADP data also pushed Treasury yields lower, reflecting lingering concerns that new tariffs could cool growth even as the labor market remains resilient. The 10-year Treasury yield dropped to 4.14 percent, down from 4.17 percent the day before, continuing a downward trend that began in January.

The March data suggests a stable hiring environment, while February’s job gains were revised upward from 77,000 to 84,000.

The ADP report comes ahead of the Labor Department’s official March jobs report, which is scheduled for release later this week.

While the two reports differ in methodology, the ADP data is closely watched as an early indicator of private-sector labor trends.