ADP Forecasts Another Massive Jobs Month Ahead of Labor Department Report

Andrew Cummings
April 6, 2017

US private employers added 263,000 jobs in March, more than their hirings in February and well above economists' expectations, a report by a payroll processor showed on Wednesday.

The 263K result does suggest that the level of job creation in the United States still outpaces the maintenance level needed for population growth, but it's not exactly a "blowout" either.

The top industries in new job growth were Professional/Business Services (57K) and Leisure/Hospitality (55K), which is not surprising. Analysts predict that report will show 178,000 jobs were added, according to data provider FactSet.

Employers added 263,00 jobs from February versus expectations for an increase of 187,000.

At the first bell, American benchmark West Texas Intermediate was trading at $51.70 per barrel with a 1.4 percent gain, and global benchmark Brent crude was at $54.88 with a 1.3 percent increase.

Economists predict that Friday's report from the Labor Department will reflect the addition of 180,000 jobs to non-farm payrolls, and an unemployment rate holding steady at 4.7 percent.

U.S. private businesses added 263,000 jobs in March, which is the most in more than two years, a private survey found. And, for the second month in a row, Construction and Manufacturing jobs outperformed expectations, helping overall totals in the non-government labor market. Goods-producing employment increased by 82,000 jobs. This is up from 245,000 in February, down from the originally estimated 298,000 jobs, and marks the fifth consecutive month of private sector employment gains above 200,000. Mid-sized businesses consisting of 50 to 499 employees also made big gains in March, adding 100,000 jobs.

In negative economic news released on Wednesday, the Institute of Supply Management (ISM) said its non-manufacturing purchasing manager's index (PMI) fell to 55.2 in March.

For the second straight month, private sector job creation also appeared to continue to return to the historical norm relating to the majority coming from small- and medium-size businesses.

Two quotes accompanied the March ADP Payrolls report.

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