Despite Tight Labor Market, Private Sector Added 455,000 Jobs in March
“Job growth was broad-based across sectors in March, contributing to the nearly 1.5 million jobs added for the first quarter in 2022,” said Nela Richardson, chief economist at ADP. “Businesses are hiring, specifically among the service providers which had the most ground to make up due to early pandemic losses. However, a tight labor supply remains an obstacle for continued growth in consumer-facing industries.”
Medium-sized businesses added the most jobs (188,000) followed by large businesses — those with 500 or more employees — which added 177,000 positions. Small businesses added 90,000 jobs according to ADP data.
In terms of growth sectors, the service-providing sector added the most jobs (377,000) led by the leisure and hospitality industry, which added 161,000 jobs, and the education/health services industry, which added 72,000 jobs.
As for the goods-producing sector, it grew by 79,000 jobs, with the manufacturing industry adding the most within this sector (54,000 jobs).
Dev Randhawa, CEO of Fission 3.0. Corp., told GOBankingRates that he is not surprised by the rising payroll numbers in March.
“I have personally seen an immense opportunity in the energy industry job market and also a big appetite from workers to be part of this flourishing industry. Mining and energy jobs are on the rise especially with the world heading into electrification,” Randhawa said. “I suspect that this number will continue to rise and more and more industries will be adding employees to their payrolls as we head into the second half of 2023.”
The Bureau of Labor Statistics will release its nonfarm payrolls report on April 1 — a report which is expected to show jobs growth of around 490,000 for the month and an unemployment rate of approximately 3.8%, according to The Street.
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