One thing that most people can agree on is that more and more jobs being created or added is a good thing. After all, not too many people are all that happy when there are no job opportunities out there. After a strong payrolls report in February, ADP has forecast that the United States added 263,000 private sector payrolls in March.
This figure blew out the Bloomberg consensus estimate of 170,000 for March, and it blew past the Econoday range of 110,000 to 200,000.
The prior 298,000 payrolls added in February was revised lower, but still way ahead of expectations at 245,000. ADP shows that the sample used to create the ADP National Employment Report is taken directly from ADP payroll data. It represents some 411,000 U.S. clients employing nearly 24 million workers in the United States.
Professional and business services led the charge with a gain of 57,000 jobs. Construction jobs posted a strong 49,000 gain, and the manufacturing segment saw a gain of 30,000 jobs. Leisure and hospitality added 55,000 in March.
Small businesses led the charge with a gain of 118,000 jobs, indicating growth in the one to 49 employee companies. Medium-sized businesses, those with 50 to 499 employees, added 100,000 jobs in March’s ADP system. Large businesses added 45,000 payrolls in March.
Wednesday’s report likely will add more pressure to the consensus estimates for this Friday’s key unemployment and payrolls report from the Bureau of Labor Statistics. The Bloomberg consensus estimate was last seen at 178,000 in nonfarm payrolls and 170,000 in private sector payrolls. The prior reading from February showed gains of 178,000 in total nonfarm payrolls and gains of 170,000 in private sector payrolls.
Two quotes accompanied the March ADP Payrolls report. Ahu Yildirmaz, vice president and co-head of the ADP Research Institute said:
The U.S. labor market finished the first quarter on a strong note. Consumer dependent industries including healthcare, leisure and hospitality, and trade had strong growth during the month.
Mark Zandi, chief economist of Moody’s Analytics said:
Job growth is off to a strong start in 2017. The gains are broad based but most notable in the goods producing side of the economy including construction, manufacturing and mining.