2022.03.3013:28:00UTC+00U.S. Private Sector Employment Jumps By 455,000 Jobs, Slightly More Than Expected

Private sector employment in the U.S. increased by slightly more than expected in the month of March, according to a report released by payroll processor ADP on Wednesday.

ADP said private sector employment jumped by 455,000 jobs in March after surging by an upwardly revised 486,000 jobs in February.

Economists had expected private sector employment to climb by 450,000 jobs compared to the addition of 475,000 jobs originally reported for the previous month.

"Job growth was broad-based across sectors in March, contributing to the nearly 1.5 million jobs added for the first quarter in 2022," said ADP chief economist Nela Richardson.

"Businesses are hiring, specifically among the service providers which had the most ground to make up due to early pandemic losses," she added. "However, a tight labor supply remains an obstacle for continued growth in consumer-facing industries."

The report showed employment in the service-providing sector spiked by 377,000 jobs, led by a 161,000 jump in jobs in the leisure and hospitality industry.

Employment in the goods-producing sector also increased by 79,000 jobs, as manufacturing employment rose by 54,000 jobs.

ADP said employment at small businesses climbed by 90,000 jobs, while large and medium businesses added 177,000 jobs and 188,000 jobs, respectively.

On Friday, the Labor Department is scheduled to release its more closely watched monthly jobs report, which includes both public and private sector jobs.

Employment is expected to increase by 480,000 jobs in March after jumping by 678,000 jobs in February, while the unemployment rate is expected to edge down to 3.7 percent from 3.8 percent.