It was another blockbuster month for private payrolls, according to this month’s ADP National Employment Report. The payroll processor reported the addition of 263,000 jobs in the private sector, beating economists’ forecasts of 110,000 to 225,000 jobs, per Reuters. However, last month’s tally was revised downward from 298,000 jobs to 245,000 jobs.
“The U.S. labor market finished the first quarter on a strong note,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, in a statement. “Consumer dependent industries including healthcare, leisure and hospitality, and trade had strong growth during the month.”
Small businesses with fewer than 50 employees added the most jobs last month: 118,000. Medium-sized businesses with between 50 and 499 employees added 100,000 jobs, while large employers with 500 or more employees added 45,000 jobs.
Where the Jobs Are
“Job growth is off to a strong start in 2017,” said Mark Zandi, chief economist of Moody’s Analytics, which produces the report with ADP. “The gains are broad based but most notable in the goods producing side of the economy including construction, manufacturing and mining.”
The goods-producing sector added 82,000 jobs last month, with gains in mining (4,000 jobs), construction (49,000 jobs), and manufacturing (30,000 jobs.)
The service-providing sector added 181,000 jobs in March. The following industries added jobs to their payrolls:
- Professional/business services (57,000 jobs)
- Leisure/hospitality (55,000 jobs)
- Healthcare (46,000 jobs)
- Trade/transportation/utilities (34,000 jobs)
- Financial activities (25,000 jobs)
Education lost 32,000 jobs last month, while information shed 10,000 jobs.
Economists predict that Friday’s report from the Labor Department will reflect the addition of 180,000 jobs to non-farm payrolls, and an unemployment rate holding steady at 4.7 percent. The report will also contain information on wage growth. The PayScale Index, which measures the change in wages for employed U.S. workers, forecasts 3.2 percent year-over-year wage growth for Q1 2017.
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