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US adds 200,000 private sector jobs in March, ADP reports

March 30, 2016

US private sector employment rose by 200,000 jobs in March from February, according to the ADP national employment report produced by Automatic Data Processing Inc. (NASD: ADP) in collaboration with Moody’s Analytics. March’s jobs gain is a slight decrease from February’s 205,000 additions, which was revised downward from 215,000.

“The job market continues on its amazing streak,” said Mark Zandi, chief economist of Moody’s Analytics. “The March job gain of 200,000 is consistent with average monthly job growth of the past more than four years. The only industry reducing payrolls is energy as has been the case for over a year. All indications are that the job machine will remain in high gear.”

The jobs gain exceeded the median forecast in a Bloomberg survey of economists, which called for a 195,000 increase with estimates ranging from 150,000 to 225,000.

Large businesses added 39,000 jobs in March, which is about half of February's 77,000. Businesses with more than 1,000 employees added 18,000 jobs, while businesses with 500 to 999 employees added 20,000 jobs.

Small businesses added 86,000 jobs in March, up from February's downwardly revised 68,000. Midsize businesses added 75,000 jobs, up from February's downwardly revised 60,000, according to the report.

“The trade, transportation and utilities sector had its best month of employment gains since last June,” said Ahu Yildirmaz, VP and head of the ADP Research Institute. “Steady employment growth and accelerating wage growth in the workforce appear to be benefitting the trade segment in particular.”

By sector, the service-providing sector added 191,000 jobs in March, down from 204,000 in February. The report indicates that professional/business services contributed 28,000 jobs, down sharply from February’s 51,000. Trade/transportation/utilities grew by 42,000, well above the 24,000 jobs added the previous month. Financial activities added 14,000 jobs which is in line with the average monthly increase in that sector over the past year.

The goods-producing sector added 9,000 jobs in March, up from a downwardly revised 2,000 in February. The construction industry added 17,000 jobs, which was down from February’s 24,000. Meanwhile, manufacturing added 3,000 jobs after losing 9,000 the previous month.