U.S. Private Sector Job Growth Crushes Forecast, Gains By 241,000 in March

Job seekers wait to meet with employers at a career fair in New York City, October 24, 2012. (Photo: Reuters)

The ADP National Employment Report showed the U.S. private sector added 241,000 jobs in March, crushing the 181,000 median forecast. Mid-sized businesses added the most jobs in the month and by the strongest pace in roughly 4 years.

“We saw impressive momentum in the first quarter of 2018 with more jobs added per month on average than in 2017,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “Midsized businesses added nearly half of all jobs this month, the best growth this segment has seen since the fall of 2014. The manufacturing industry also performed well, with its strongest increase in more than three years.”

Small businesses with 1-49 employees added 47,000 jobs in March juxtaposed to a very strong 127,000 jobs created by mid-sized businesses with 50-499 employees. Large businesses with 500 employees or more added 67,000 jobs, indicating the jobs creates are of higher quality and higher wages.

The goods-producing sector added a significant 65,000 jobs, overall. Construction led the way with 31,000 new jobs and manufacturing followed closely behind with 29,000. Natural resources and mining, which were all but extinct under Barack Obama, added another 5,000.

“The job market is rip-roaring. Monthly job growth remains firmly over 200,000, double the pace of labor force growth,” Mark Zandi, chief economist of Moody’s Analytics, said. “The tight labor market continues to tighten.”

While the traditionally lower-paying service-providing sector added 176,000 jobs, the largest gain at 44,000 came from professional and business services.