In March, the private sector exceeded expectations, adding 155,000 new jobs – well above the forecasted 105,000. Gains were seen across companies of all sizes, with small businesses adding a notable 52,000 positions after several months of weak or negative growth. While the bulk of hiring occurred in the service sector (+132,000 jobs), there were also positive signs on the goods side, as manufacturing delivered stronger-than-average job gains for the second consecutive month. Wage growth remained solid, though it dipped slightly for existing employees (from 4.7% to 4.6%). Those changing jobs saw a larger decline (from 6.8% to 6.5%), and the pay premium for job transitions matched a series low at 1.9%, suggesting less poaching and enticement to switch roles.
What’s the bottom line?
According to ADP’s chief economist Nela Richardson, “Despite policy uncertainty and down beat 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.”