According to ADP

• Private-sector employment rose by 455,000 in March, according to the ADP National Employment Report. This is similar to job growth in recent months. 

• Job growth was broad-based across industries and firm sizes. 

• PNC expects the government’s jobs report on Friday to show an employment increase of 450,000, with the unemployment rate down slightly to 3.7%.

The private sector added 455,000 jobs in March, according to a report based on records from payroll-processing firm ADP. This was the smallest increase in the ADP survey since August 2021 but was similar to recent gains. Job growth in February was revised somewhat higher, to 484,000 from 475,000, while January job growth was 512,000, revised up from 509,000. 

Private service-providing industries added 377,000 jobs in March, including gains of 161,000 in leisure/hospitality services, which continue to recover from the pandemic. There were also increases of 72,000 in education/health services, 61,000 in professional/business services, and 49,000 in trade/transportation/utilities. Employment in goods-producing industries rose by 79,000 over the month, with increases of 54,000 in manufacturing, 15,000 in construction, and 9,000 in natural resources and mining. The increase in natural resources and mining suggests that domestic energy production is increasing in response to higher prices. 

Employment at firms with fewer than 50 employees rose by 90,000, while it rose by 188,000 at firms with 50 to 499 employees. Employment at the largest firms rose by 177,000. It could be that larger companies have an advantage in attracting new hires given the tight labor market. 

The March ADP employment report was solid, consistent with job growth in recent months. PNC is expecting overall job growth of 450,000, including private-sector gains of 430,000, when the Bureau of Labor Statistics releases the government’s official jobs report for March on Friday morning. As of February, employment in the US was down by about 2 million from its pre-pandemic peak; employment should surpass its pre-pandemic level in the third quarter. PNC expects that the unemployment rate fell to 3.7% in March from 3.8% in October. After soaring to almost 15% in April 2020, the unemployment rate should be back to its pre-pandemic level of 3.5% in mid-2022.

The PNC Financial Services Group, Inc. is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. For information about PNC, visit www.pnc.com.