US added 129,000 private sector jobs in March
The US added the lowest number of private payrolls since 2017.
The US added 129,000 private sector jobs in March, according to the Automatic Data Processing (ADP) National Employment Report. That statistic is less than the 173,000 positions expected from economists and is the lowest amount in almost two years.
March US private sector jobs: key figures
| Education and health services | +56,000 |
| Professional and business services | +41,000 |
| Construction | -6000 |
| Manufacturing | -2000 |
March US private sector jobs details
There were additions to private sector jobs in the education and health industries in March. Last month, those industries added 56,000 employees. Professional and business services jobs increased by adding 41,000 new private sector payrolls. While those industries added jobs, two sectors lost employees. Construction lost 6,000 jobs and manufacturing positions declined by 2000.
What do the private sector job statistics mean for the US economy?
Mark Zandi, chief economist at Moody’s Analytics, believes the private payroll statistics are a worrying sign for the US economy.
‘The job market is weakening, with employment gains slowing significantly across most industries and company sizes,’ said Zandi.
He also noted that the uncertainty about a possible US-China trade deal and the diminishing benefits of 2018 tax cuts are affecting the sluggish rate of new hires.
‘Businesses are hiring cautiously as the economy is struggling with fading fiscal stimulus, the trade uncertainty, and the lagged impact of Fed tightening. If employment growth weakens much further, unemployment will begin to rise,’ added Zandi.
Ian Shepherdson, chief economist at Pantheon Macroeconomics, said that ADP’s low March numbers were impacted by February’s weak employment figures because of harsh weather.
‘Frustratingly, the influence of the prior month's official numbers is impossible to isolate consistently in advance. Usually, the effect of weak official numbers on the next ADP reading is seen in the month after severe weather events,’ said Shepherdson.
Wall Street is hoping that the US employment figures for March that will be released later this week will have better news than the discouraging ADP employment report.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Be ready to act on ECB opportunities
Learn how the ECB’s monetary policy announcements affect interest rates and price stability ahead of its next meeting in 12 December 2024.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
