ADP Jobs Report: Payrolls Surge Despite Tariff Fears (Apr 2)
## ADP Report Shows Strong Payroll Growth in March Despite Economic Uncertainty
U.S. private sector payrolls exceeded expectations in March, according to the ADP National Employment Report released Wednesday. Companies added 155,000 jobs, a notable increase from February's revised figure of 84,000. Economists polled by Reuters had forecast a gain of only 115,000 private sector jobs.
The ADP report indicates broad-based hiring across various sectors. Service providers accounted for 132,000 new positions, while the goods-producing sector added 24,000 jobs. Professional and business services led the way with 57,000 new jobs, followed by financial activities with 38,000. Manufacturing contributed 21,000 jobs, and leisure and hospitality added 17,000. However, trade, transportation, and utilities experienced a loss of 6,000 jobs, and natural resources and mining declined by 3,000.
The positive ADP data arrives amid concerns that President Trump's tariff policies could negatively impact business activity and hiring. Uncertainty surrounding these policies is causing worry in the economic community. Trump is expected to announce the next step in his trade policy on Wednesday.
Economists warn the tariffs could erode labor demand. Business and consumer confidence have sagged, which could see a retrenchment in investment and consumer spending. Pressure is also seen coming from government spending cuts, which have so far resulted in thousands of federal workers being fired.
The ADP report, jointly developed with the Stanford Digital Economy Lab, precedes the Labor Department's more comprehensive Bureau of Labor Statistics (BLS) employment report, due Friday. Economists expect the BLS report to show an increase of 135,000 nonfarm payrolls in March, with federal payrolls expected to decline by at least 15,000. There is no correlation between the ADP and BLS employment reports. The unemployment rate is forecast unchanged at 4.1%.
U.S. private sector payrolls exceeded expectations in March, according to the ADP National Employment Report released Wednesday. Companies added 155,000 jobs, a notable increase from February's revised figure of 84,000. Economists polled by Reuters had forecast a gain of only 115,000 private sector jobs.
The ADP report indicates broad-based hiring across various sectors. Service providers accounted for 132,000 new positions, while the goods-producing sector added 24,000 jobs. Professional and business services led the way with 57,000 new jobs, followed by financial activities with 38,000. Manufacturing contributed 21,000 jobs, and leisure and hospitality added 17,000. However, trade, transportation, and utilities experienced a loss of 6,000 jobs, and natural resources and mining declined by 3,000.
The positive ADP data arrives amid concerns that President Trump's tariff policies could negatively impact business activity and hiring. Uncertainty surrounding these policies is causing worry in the economic community. Trump is expected to announce the next step in his trade policy on Wednesday.
Economists warn the tariffs could erode labor demand. Business and consumer confidence have sagged, which could see a retrenchment in investment and consumer spending. Pressure is also seen coming from government spending cuts, which have so far resulted in thousands of federal workers being fired.
The ADP report, jointly developed with the Stanford Digital Economy Lab, precedes the Labor Department's more comprehensive Bureau of Labor Statistics (BLS) employment report, due Friday. Economists expect the BLS report to show an increase of 135,000 nonfarm payrolls in March, with federal payrolls expected to decline by at least 15,000. There is no correlation between the ADP and BLS employment reports. The unemployment rate is forecast unchanged at 4.1%.
