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Private sector employment showed unexpected strength in March, with ADP reporting 155,000 new jobs added across the U.S. economy. This robust performance contradicted predictions that trade tensions would negatively impact the job market.
The strongest gains came from professional and business services, which added 57,000 positions, while financial activities contributed 38,000 jobs and manufacturing grew by 21,000. These numbers represented a significant improvement from February’s revised figure of 84,000 jobs and surpassed economists’ predictions of 120,000.
“Despite policy uncertainty and downbeat consumers, the bottom line is this: The March topline number was a good one for the economy and employers of all sizes, if not necessarily all sectors,” said Nela Richardson, ADP’s chief economist.
Job creation leaps in Trump’s first job report, hitting 151,000 despite thousands of federal layoffs.
From here it’s a race between private sector job growth and federal layoffs. With potentially millions of idle workers coming back after the Biden stagnation. pic.twitter.com/D0VPi81yDm
— Peter St Onge, Ph.D. (@profstonge) March 10, 2025
The goods-producing sector demonstrated particular resilience, creating 24,000 new positions, with manufacturing posting strong gains for the second consecutive month. While construction showed some slowdown, and sectors like natural resources, trade, transportation, and utilities experienced losses, these changes reflected more localized or seasonal factors.
Wage growth, though slightly moderating, remained strong. Workers staying in their positions saw annual pay increases of 4.6 percent, while those changing jobs experienced 6.5 percent growth. The diminishing difference between these rates suggests employees are finding satisfactory compensation without needing to switch employers.
Regional performance varied significantly, with the Northeast and Midwest leading the charge by collectively adding 170,000 jobs. The South showed modest improvement, while the West experienced a decline of 41,000 positions. Companies of all sizes participated in the hiring surge, with large corporations adding 59,000 employees and smaller businesses also expanding their workforces.
Trump's plan for tariffs is already beginning to show that it's working. Manufacturing jobs in the United States have been increasing since Trump took office.https://t.co/pT7HCM2yS8 https://t.co/RZTthKwKAg pic.twitter.com/najaLF5jWj
— Department of Winning (@DeptofWinning) April 2, 2025
These results provide further evidence that the U.S. labor market continues to show resilience as it adapts to new trade policies. Despite ongoing concerns about tariffs potentially dampening business confidence and investment, actual employment data tells a more positive story.
The upcoming Bureau of Labor Statistics report, which will include government employment figures, is anticipated to show 131,000 new jobs and a slight increase in the unemployment rate to 4.2 percent.
