The U.S. private sector saw a steady climb in employment this March, adding 62,000 jobs, according to the latest ADP National Employment Report. While hiring remains consistent, the data reveals a divide between booming sectors like health care and declining figures in trade and transportation.
The report, produced by the ADP Research Institute in collaboration with the Stanford Digital Economy Lab, also highlighted a 4.5% year-over-year increase in annual pay for those remaining in their current roles.
The primary engine of growth this month was small business. Establishments with fewer than 20 employees added 112,000 jobs, offsetting losses seen in medium and large-scale firms.
| Establishment Size | Job Change |
| Small (1-49 employees) | +85,000 |
| Medium (50-499 employees) | -20,000 |
| Large (500+ employees) | -4,000 |
Sector performance varied significantly, with service-providing industries showing the most volatility. Education and health services led the gains, while trade, transportation, and utilities saw a sharp decline.
- Top Gainers: Education/Health Services (+58,000) and Construction (+30,000).
- Top Declines: Trade/Transportation/Utilities (-58,000) and Manufacturing (-11,000).
“Overall hiring is steady, but job growth continues to favor certain industries, including health care,” Nela Richardson, chief economist at ADP said. “In March, this solid performance was accompanied by a boost in pay gains for job-changers.”
The South dominated the hiring landscape, adding 101,000 jobs, with particularly strong showings in the West South Central region (+50,000). Conversely, the Northeast and Midwest struggled, losing a combined 55,000 positions.
While pay growth for “job-stayers” held steady at 4.5% for the third consecutive month, those who switched employers saw their year-over-year pay gains accelerate to 6.6%.
Within specific industries for those staying in their roles, the Financial Activities sector saw the highest median pay increase at 5.2%, followed closely by Manufacturing at 4.9%.
Note: The total number of jobs added in February was revised upward from 63,000 to 66,000, suggesting a slightly stronger end to the winter than previously estimated.
