Private US firms added hundreds of thousands of jobs in March

WASHINGTON - US private employers added hundreds of thousands of jobs in March, a survey said yesterday, in a sign the American labour market remains healthy, even as the wider economy struggles with inflation and supply shortages.

Payroll services firm ADP reported private employers hired 455 000 people this month, slightly more than forecast, but less than the upwardly revised 486 000 positions added in February.

“Businesses are hiring, specifically among the service providers, which had the most ground to make up due to early pandemic losses,” ADP’s Chief Economist Nela Richardson said.

“However, a tight labour supply remains an obstacle for continued growth in consumer-facing industries,” she added.

Rubeela Farooqi of High Frequency Economics noted that the data indicated hiring was less robust than in prior months, but nonetheless remained healthy.

“Recent data on the labour market, including the downtrend in layoffs and strength in job growth, are signalling positive momentum, even as the supply side remains a constraint,” she said in an analysis.

The survey is seen as a preview of the government’s jobs report due out tomorrow, which is expected to show the economy adding hundreds of thousands of positions and the unemployment rate ticking down slightly.

ADP reported that companies of all sizes added positions last month, with large employers gaining 177 000, medium-sized firms adding 188 000, and small businesses hiring 90 000.

The services’ sector dominated the hiring, gaining 377 000 positions in total. Leisure and hospitality added 161 000 jobs, professional and business services gained 61 000, and employment in education and health services rose 72 000.

The goods sector added 79 000 positions, most of which were in manufacturing firms, where employment climbed 54 000.