US Private Sector Employment Increases by 145,000 Jobs in March, with 6.9% Annual Pay Growth
Private sector employment in the US increased by 145,000 jobs in March, while annual pay was up 6.9% year-over-year, according to the March ADP National Employment Report.[0] The report, produced by the ADP Research Institute in collaboration with the Stanford Digital Economy Lab, uses anonymised payroll data from more than 25 million US employees to provide a representative picture of the labour market.[1] Small and medium-sized businesses drove the employment gains, adding 101,000 and 33,000 jobs respectively, while large businesses added just 10,000 jobs.[2] While the leisure and hospitality industry saw the largest growth with 98,000 new jobs added, the financial activities industry lost 51,000 positions.[3] Annual pay growth decelerated for both job stayers and job changers, with job stayers seeing a decline to 6.9% from 7.2% in February, and job changers experiencing a pay increase of 14.2%, down from 14.4%.[4]
ADP's chief economist, Nela Richardson, said, “Our March payroll data is one of several signals that the economy is slowing. Employers are pulling back from a year of strong hiring and pay growth, after a three-month plateau, is inching down.”[5] The report follows the Paychex | IHS Markit Small Business Employment Watch, which found that small business employment had grown consistently during the first quarter of 2023, with the Small Business Jobs Index increasing modestly (0.06%) from the previous month to 99.73.[6] The report also showed average hourly earnings increased slightly from the previous month to 4.64%.[7]
0. “Private Sector Employment Rose by 145,000 Jobs in March” Floor Focus, 5 Apr. 2023, https://www.floordaily.net/flooring-news/private-sector-employment-rose-by-145000-jobs-in-march
1. “ADP National Employment Report: Private Sector Employment Increased by 145,000 Jobs in March; Annual Pay was Up 6.9%” Forex Factory, 5 Apr. 2023, https://www.forexfactory.com/news/1214403-adp-national-employment-report-private-sector-employment-increased
2. “U.S. Private-Sector Hiring Eased in March in Signal of Slowing Economy, ADP Says” Morningstar, 5 Apr. 2023, https://www.morningstar.com/news/dow-jones/202304055035/us-private-sector-hiring-eased-in-march-in-signal-of-slowing-economy-adp-says
3. “US private sector hiring slows more than expected in March, ADP says” ShareCast, 5 Apr. 2023, https://www.sharecast.com/news/international-economic/us-private-sector-hiring-slows-more-than-expected-in-march-adp-says–12921136.html
4. “Private US Employers Added Fewer Jobs Than Expected in March” Investopedia, 5 Apr. 2023, https://www.investopedia.com/private-us-employers-added-fewer-jobs-than-expected-in-march-7375930
5. “ADP data: U.S. businesses add fewer jobs than projected” Crain's Cleveland Business, 5 Apr. 2023, https://www.crainscleveland.com/economic-outlook/adp-data-us-businesses-add-fewer-jobs-projected
6. “Small business jobs and employee earnings grew slightly in March” Accounting Today, 4 Apr. 2023, https://www.accountingtoday.com/news/small-business-jobs-and-employee-earnings-grew-slightly-in-march
7. “Small Business Jobs and Wages Increase Modestly in March” PR Newswire, 4 Apr. 2023, https://www.prnewswire.com/news-releases/small-business-jobs-and-wages-increase-modestly-in-march-301789117.html
