Passengers arrive from Metro North Railroad trains at Grand Central Station in New York.
Timothy A. Clary | AFP | beautiful pictures
Companies added jobs at a solid rate in March, showing hiring is picking up sharply despite signs of a tightening labor market, payroll processor ADP reported on Wednesday.
Private payrolls increased by 455,000 for the month, the company said, matching Dow Jones estimates of 450,000 although it is the lowest since August 2021. The total is slightly below the level. 486,000 was revised upwards in February, and gives first quarter ADP. the number of jobs up to 1.45 million.
The report comes two days ahead of the more closely watched nonfarm payrolls report, with the Bureau of Labor Statistics expected to show job growth of 490,000 for the month, according to dong estimates. Dow Jones agreement. ADP and BLS numbers can vary widely, as they did in February when the number of companies paying wages was about 200,000 lower than the official government inventory.
The ADP report for March indicates that hiring is spread across sectors, with leisure and hospitality adding 166,000 to take the lead. Education and health services contributed 72,000 while professional and business services were behind with 61,000 new jobs.
In terms of goods production, manufacturing led with 54,000 while construction increased by 15,000.
Firms providing services added 377,000 jobs while manufacturers of goods created a balance of about 79,000.
By size, the job gains were also fairly evenly distributed, with companies employing between 50 and 499 workers, up 188,000, and large firms adding 177,000. Small business, which fell in February, reversed that and added 90,000 in March.
“Businesses that are hiring, especially among service providers, have the most facilities to offset the early damage of the pandemic,” said Nela Richardson, chief economist at ADP. “However, tight labor supply remains an obstacle to continued growth in consumer-driven industries.”
Indeed, in February there was record more than 5 million jobs according to BLS data released on Wednesday. Workers continue to leave their jobs in search of better opportunities, with another 4.3 million participating in the so-called Big Resignation of the month.
Friday’s report is expected to show the unemployment rate falling to 3.7%.
Federal Reserve officials are keeping a close eye on employment numbers as the central bank battles inflation at a 40-year high. Job growth was accompanied by a strong acceleration in wages, and the Fed is expected to raise interest rates at a brisk pace this year to combat rising prices.