Private Employment Beats Expectations In March As Labor Market Shrugs Off Tariff Worries

Private sector job growth exceeded expectations in March, signaling a surprisingly resilient labor market even as U.S. businesses face growing uncertainty over the potential impact of tariffs.

U.S. private employers added 155,000 jobs in March, according to the latest Employment Report from Automatic Data Processing.

The figure represents a notable pickup from February's upwardly revised total of 84,000 and comes in well above the market forecast of 105,000.

“Despite policy uncertainty and downbeat consumers, the bottom line is this: The March topline number was a good one for the economy and employers of all sizes, if not necessarily all sectors,” said Nela Richardson, chief economist at ADP.

Where Did Jobs Grow In March?

The latest figures showed job gains across both service-providing and goods-producing sectors.

Goods-producing industries added 24,000 positions in March, with manufacturing contributing 13,000 new jobs.

Meanwhile, service-providing sectors expanded by 132,000 jobs, led by professional and business services, which added 57,000 roles. However, trade, transportation, and utilities shed 6,000 positions.

The ADP report also pointed to a continued easing in wage growth. Annual pay increases stood at 4.6% for job stayers, while job changers saw a 6.5% rise.

Market Reactions

The U.S. Dollar Index (DXY) – as tracked by the Invesco DB USD Index Bullish Fund ETF UUP, fell by 0.2% after the report.

Futures on major U.S. indices were sharply lower during premarket trading in New York. The SPDR S&P 500 ETF Trust SPY was 1.2% lower by 8:25 a.m. ET.

Gold – tracked by SPDR Gold Trust GLD – traded at $3,120 per ounce, up 0.3%.

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Image created using artificial intelligence via Midjourney.