The private company sector reportedly managed to add more jobs in March. This indicates that recruitment is strong despite signs that the labor market is increasingly depressed.
The total private salary was successfully increased by 455,000 in March as reported by the ADP report just now. The data is also in line with Dow Jones economists' forecast of 450,000 even though the figure is the lowest since August 2021. The number is slightly less than the February reading and makes the first quarter ADP reading 1.45 million.
The report was released two days before NFP data was released with the Bureau of Labor Statistics expected to show job growth of 490,000 for March. It should be noted that ADP and NFP data can differ widely, as happened in February when the firm’s count was about 200,000 under official government calculations.
The ADP report for March showed that recruitment was evenly distributed across sectors, with the recreation and hospitality sectors adding 161,000 jobs. Education and health services accounted for 72,000 jobs while professional and business services followed with 61,000 new jobs.
According to ADP chief economist Nela Richardson, that services sector has taken on many workers as many have begun to recover from the impact of the Covid-19 pandemic. "However, tight labor supply remains a barrier to continued growth in the consumer -facing industry."
On the other hand, there is a situation where workers continue to leave their jobs in search of better opportunities with 4.3 million people resigning. A report on Friday expected that the unemployment rate would contract further, to 3.7%.
