US ADP private employment rose 62k in March, above expectations of 42k, pointing to steady but moderate labor market expansion. The increase was broadly balanced between goods-producing industries, which added 30k jobs, and service-providing sectors, which gained 32k.
However, the composition of job growth highlights an uneven picture. Small establishments led hiring with an increase of 85k jobs, while medium and large firms shed -20k and -4k respectively.
On the wage front, conditions remain firm but uneven. Pay growth for job-stayers held steady at 4.5% yoy for a third consecutive month. Job-changers saw gains accelerate from 6.3% yoy to 6.6% yoy.
ADP Chief Economist Nela Richardson noted that hiring remains concentrated in certain industries, particularly healthcare, and that stronger pay gains for job-changers reflect continued competition for skilled labor even as overall hiring momentum stays moderate.
