The U.S. private sector added 155,000 jobs in March 2025, according to the latest ADP (NASDAQ: ADP) National Employment Report. This marks a significant rebound from February’s revised figure of 84,000 and surpasses the Dow Jones forecast of 120,000. The report also highlighted a 4.6% year-over-year increase in annual pay, signaling continued resilience in the labor market despite broader economic uncertainties.
Service-providing industries led the surge, contributing 132,000 new roles across various sectors. Professional and business services added the highest number of jobs (57,000), followed by financial activities with 38,000 positions, likely driven by tax season demands. Manufacturing continued its upward trend with 21,000 jobs created, while leisure and hospitality added 17,000 roles. In contrast, trade, transportation, and utilities lost 6,000 jobs, and natural resources and mining declined by 3,000 positions.
Goods-producing industries added 24,000 jobs overall. This growth reflects a broader trend favoring service-providing employment over goods-producing roles in the U.S. economy. Additionally, wage growth was notable; job-stayers saw a year-over-year increase of 4.6%, while job-changers experienced a rise of 6.5%. These figures indicate reduced mobility among workers seeking new opportunities
The stronger-than-expected job growth alleviates concerns about a potential slowdown in the labor market amid ongoing economic challenges such as policy uncertainty and trade tensions. Nela Richardson, ADP’s chief economist, emphasized that March’s results are a positive signal for employers across various sectors despite uneven performance.
This report precedes the Bureau of Labor Statistics’ (BLS) nonfarm payroll data release later this week. While ADP’s findings focus solely on private-sector employment using anonymized payroll data from over 25 million workers, the BLS report will include government employment figures and is expected to show a more modest gain of around 140,000 jobs for March.
For investors tracking labor market trends as an indicator of economic health, ADP’s report provides reassurance of continued strength in private-sector hiring. However, the deceleration in wage growth for job changers may hint at cautious employer behavior or tightening labor market conditions. These dynamics could influence consumer spending patterns and broader economic growth moving forward.
As ADP continues to deliver high-frequency insights into employment trends through its collaboration with the Stanford Digital Economy Lab, its reports remain a critical resource for understanding the evolving U.S. labor market landscape.
