Job creation was underwhelming in March, according to the latest ADP National Employment Report.
- Private sector employment increased by 145,000 jobs in March, lower than February’s revised 261k and the second lowest month in the last twelve months.
- Annual pay was up 6.9% year-over-year, down from 7.2% in February.
Swing & A Miss. ADP missed the mark as economists were expecting 200k jobs in March
Small Business Boom. Almost all the job growth this month was thanks to small businesses. Companies with fewer than 50 employees created 111k jobs in March, a huge turnaround from the 61k job less in February.
- Mid-sized and large companies created 33k and 10k jobs, respectively.
Leisure & Hospitality. Leisure & hospitality continues to be the biggest job creator with 98,000 new jobs in March followed by trade, transportation, & utilities (+56k), construction (+53k), and natural resources & mining (+47k).
- Financial activities were the big loser in March with 51k fewer jobs followed by professional & business services (-46k) and manufacturing (-30k).
- Service & goods were neck and neck this month with services barely beating out goods 75k to 70k.