US ADP private sector employment rose by 155k in March, exceeding expectations of 120k. There were 24k positions added in goods-producing sectors and 132k in services.
Employers of all sizes contributed to the growth, with small firms leading the way, adding 52k jobs, followed by large and medium-sized businesses with 59k and 43k respectively.
Despite the strong employment numbers, wage growth continued to decelerate. Year-over-year pay gains slowed to 4.6% for job-stayers and 6.5% for job-changers. The premium for switching jobs fell to 1.9 percentage points—the lowest in the series since September.
ADP Chief Economist Nela Richardson commented that despite “policy uncertainty and downbeat consumers,” the headline job number was a positive indicator for the economy and businesses of all sizes.
