ADP: U.S. Private Payrolls Rise by 155K in March, Led by Surge in White-Collar Hiring

U.S. Private Payrolls Rise 155,000 in March, Led by Financial and Business Services Gains

Private-sector hiring in the U.S. accelerated in March, with employers adding 155,000 jobs, according to the latest ADP National Employment Report. The figure, while not broad-based across all industries, marks a solid gain and supports expectations for continued labor market resilience despite lingering policy uncertainty and cautious consumer sentiment.

Job Growth Led by Large and Mid-Sized Businesses

Large employers—those with over 500 workers—were the biggest contributors, adding 59,000 jobs in March. Mid-sized businesses (50–499 employees) followed closely, with 43,000 new positions combined. Small businesses posted a total gain of 52,000 jobs, driven primarily by the smallest firms (1–19 employees), which added 42,000 roles.

This employment strength suggests that hiring appetite remains intact across company sizes, especially as larger firms regain momentum after past restructuring waves. The composition of job growth indicates more selective hiring aligned with sector-specific performance and operational scalability.

Services Sector Drives Employment Upside

The services sector provided most of the gains, with financial activities and professional/business services leading the way. Financial activities posted a robust 38,000 increase, while professional and business services added 57,000 jobs—highlighting continued demand in white-collar segments.

Leisure and hospitality added 17,000 jobs, signaling moderate recovery, though below the highs seen during previous reopening phases. Education and health services, another traditionally stable segment, added 12,000 jobs. However, weakness in trade, transportation, and utilities was notable, with a net loss of 6,000 jobs, indicating ongoing stress in supply-sensitive and rate-sensitive areas.

Mixed Performance in Goods-Producing Sectors

Manufacturing showed strong momentum for a second straight month, adding 21,000 jobs. This suggests a moderate recovery in factory activity, possibly fueled by inventory restocking and stabilizing input costs.

In contrast, construction hiring cooled to 6,000 new jobs, and natural resources and mining lost 3,000—both pointing to cautious investment in capital-intensive segments under tighter financial conditions and subdued commodity demand.

Market Outlook: Moderately Bullish on Labor Stability

March’s ADP report signals continued labor market stability, with strength concentrated in high-skill service industries and larger firms. Although sectoral imbalances persist, particularly in trade-related and resource sectors, the overall employment trend remains positive.

The steady job creation—particularly in financial and business services—supports a moderately bullish short-term view for labor-sensitive asset classes, including consumer discretionary stocks and U.S. equity indices reliant on employment health.

More Information in our Economic Calendar.