The numbers: Private-sector employers expanded their workforce by a seasonally adjusted 241,000 jobs last month, Automatic Data Processing Inc. reported Wednesday. That gain was well above forecasts from economists polled by Econoday, who had expected on average an increase of 185,000. This is the fifth straight gain above 200,000.
What happened: According to data on 10 major industries tracked by ADP, professional/business services and trade/transportation/utilities posted the largest hiring gains in March followed by construction and manufacturing. By company size, small firms added 47,000 jobs in March, medium-sized businesses added 127,000 and large companies added 67,000.
February’s gain was upwardly revised to show 246,000 growth instead of a previously estimated 235,000.
Big picture: Economists use ADP’s data to get a feeling for the Labor Department’s employment report, which will be released Friday and covers government jobs in addition to the private sector. The ADP gain is well above estimates of the government’s data according to economists polled by MarketWatch. Analysts had forecast the government’s report to show job growth rose by 175,000 jobs in March after a torrid February gain of 313,000. The expected moderation in job growth is partly weather-related. Analysts think that cold weather might dampen hiring in March after a relatively warm February. The unemployment rate is expected to tick down to a new 17-year low of 4% from 4.1%.
What they are saying?: “The job market is rip-roaring. All the trend lines suggest we are heading to an overheating situation,” said Mark Zandi, chief economist of Moody’s Analytics.
Market reaction: Investors were not focused on economic data, paying more attention to a potential trade war between the U.S. and China. Stock futures suggested the Dow Jones Industrial DJIA, +1.65% would open sharply lower.