Private sector employers added 184,000 jobs in March as annual pay rose 5.1% year over year, payroll company ADP
March saw the biggest jump in hiring since July, led by leisure and hospitality. The overall job gains were strong across industries with the exception of professional and business services, where hiring declined. The service-providing sector added 142,000 jobs in March, including 17,000 in financial activities like banking, another 17,000 in education and health services, and 63,000 in the leisure and hospitality industry. However, the professional and business services sector, which includes accounting and tax preparation, lost 8,000 jobs over the course of the month.
It's unclear exactly where those losses occurred. ADP chief economist Nela Richardson noted that the professional and business services sector has been weak in recent months, and some of that may be due to declines in the administrative support part of the sector. "Those are typically low-paying jobs, and then the higher-paying jobs point to consulting services and other professional services and B2B businesses," Richardson said during a conference call Wednesday with reporters. "With this ongoing hybrid work schedule, the lower-paid administrative segments and support roles have taken a step back post recovery."
However, the overall job market appeared to be strong last month. "The job market as snapshotted in the March report reminds me of those old Energizer Bunny commercials," said Richardson. "It just keeps going and going. That bunny might hit a wall or a barrier, but it would just redirect and keep on going."
The goods-producing sector added 42,000 jobs, including 33,000 in construction, 8,000 in natural resources and mining, and 1,000 in manufacturing.
Small businesses added 16,000 jobs last month, including 27,000 in businesses with between one and 19 employees, offset by losses of 11,000 jobs in businesses with between 20 and 49 employees. Medium-size establishments added 93,000 jobs, including 63,000 in companies with between 50 and 249 employees, and 30,000 in organizations with between 250 and 499 employees. Large establishments with 500 employees or more added 87,000 jobs last month.
Pay gains for people who stayed in their jobs jumped in March by 10%, the second consecutive monthly increase. However, for those who stayed at their jobs, year-over-year pay gains were flat at 5.1% after months of steady deceleration. In the professional and business services sector, the rate was 5.0% for job stayers.
