U.S. businesses returned to the modest pace of hiring seen
before harsh winter weather curtailed job growth, according to a
survey of private-sector hiring released Wednesday.
Private-sector payrolls in the U.S. increased by 191,000 new
jobs in March, the national employment report compiled by payroll
processor Automatic Data Processing Inc. (ADP) and forecasting firm
Moody's Analytics reported.
Economists surveyed by the Wall Street Journal expected ADP to
report a March advance of 200,000 jobs. The February ADP employment
increase was revised up to 178,000 from 139,000 reported a month
ago.
"The job market is coming out from its deep winter slumber. Job
gains are consistent with the pace prior to the brutal winter," the
report said.
The ADP estimate is released ahead of the Bureau of Labor
Statistics' employment situation report scheduled for Friday.
Economists expect the BLS will report that nonfarm payrolls
increased 200,000 in March, better than the 175,000 slots created
in February.
The March unemployment rate is expected to fall back to 6.6%
from 6.7% in February.
Wednesday's ADP number is unlikely to cause forecasters to
change their nonfarm payroll estimates.
The ADP estimate matches another private-source forecast. On
Tuesday, Dun & Bradstreet estimated that 197,000 jobs were
added in March, led by significant job gains in the construction,
business services, and trade, transportation and utilities
segments.
According to ADP, firms employing between 1-49 workers hired
72,000 new workers last month. Medium-sized businesses with
payrolls of 50-499 workers increased payrolls by 52,000 employees.
Large firms, businesses with 500 or more employees, hired 67,000
more workers.
Service-sector payrolls increased by 164,000 slots last month.
The factory sector added only 5,000 positions. Construction
payrolls increased by 20,000 slots.
ADP, of Roseland, N.J., offers payroll processing, human
resource and benefit administration services to about 620,000
clients worldwide. Economics firm Moody's Analytics is a subsidiary
of Moody's Corporation.
Write to Kathleen Madigan at kathleen.madigan@wsj.com
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