ADP Report: Private Sector Jobs Up 191k In March

ADP March 2014The jobs picture brightened considerably in March, as 191,000 new workers were added to private sector payrolls, according to ADP’s National Employment Report.

The HR services firm, which processes payrolls for some 24 million U.S. workers, reported gains in all broad industry categories with the job growth spread almost evenly among employers ranging from the smallest (under 50 employees up by 38,000) to the largest (over 1,000 up by 53,000).

Even though the numbers fell shy of the 195,000 average estimates by economists surveyed by Bloomberg News and Reuters, the report buoyed hopes that the government’s report Friday will be equally robust. Bloomberg’s survey of labor economists and market analysts found they expect the Labor Department will report  200,000 new private sector jobs. Government employment, which is not counted in the ADP report, and which has been shrinking at the federal level, may offset some of those gains.

Economists also expect the unemployment rate to drop slightly to 6.6%.

Financial markets reacted by pushing up the yield on treasury bonds, betting the Federal Reserve may start to raise interest rates next year. The improving jobs picture, coupled with continuing improvement in other economic reports, including this week’s ISM Manufacturing report, and a rise in factory orders, are among the signals being watched by the Fed and market analysts.

“The perception is that nonfarm payrolls are going to be higher than people estimated,” said Thomas di Galoma, head of fixed income rates at ED&F Man Capital Markets in New York.

For the last three months, job growth fell below — sometimes far below — expectations. The Labor Department report showed an average gain of 129,000 jobs. The average for the same three months period a year before was 230,000 jobs.

ADP’s report, prepared by its partner Moody’s Analytics, differs often substantially from what the government report shows. For instance the Labor Department said the economy added 162,000 private sector jobs in February, while ADP initially reported a private sector gain of 139,900 jobs. In the March report this morning, ADP revised that to 178,000. The government report Friday will also contain revised numbers for January and February.

Different methods of data collection are mostly responsible for the differences in the job counts. Nonetheless, the numbers are encouraging.

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“The job market is coming out from its deep winter slumber,” said Mark Zandi, chief economist of Moody’s Analytics. “Job gains are consistent with the pace prior to the brutal winter. The gains are broad based across industries and business size classes. Even better numbers are likely in coming months as the weather warms.”

The report showed the following gains:

  • Construction 20,000
  • Manufacturing 5,000
  • Trade/transportation/utilities 36,000
  • Financial activities 5,000
  • Professional/business services 53,000

 

 

 

John Zappe is the editor of TLNT.com and a contributing editor of ERE.net. John was a newspaper reporter and editor until his geek gene lead him to launch his first website in 1994. He developed and managed online newspaper employment sites and sold advertising services to recruiters and employers. Before joining ERE Media in 2006, John was a senior consultant and analyst with Advanced Interactive Media and previously was Vice President of Digital Media for the Los Angeles Newspaper Group.

Besides writing for ERE, John consults with staffing firms and employment agencies, providing content and managing their social media programs. He also works with organizations and businesses to assist with audience development and marketing. In his spare time  he can be found hiking in the California mountains or competing in canine agility and obedience competitions.

You can contact him here.

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