U.S. private sector adds 155,000 jobs in March

ROSELAND, N.J. - The U.S. private sector saw an increase of 155,000 jobs in March, while annual pay rose 4.6 percent compared to the same period last year, according to the ADP National Employment Report produced by ADP Research in partnership with Stanford Digital Economy Lab. The report, produced by InvestingPro data shows ADP as a prominent player in the Professional Services industry with a market capitalization of $125 billion, offers a monthly snapshot of U.S. private employment based on actual payroll data from over 25 million employees.

Manufacturing sectors reported stronger-than-average job gains for the second consecutive month, while construction hiring decelerated. Notably, the natural resources and trade, transportation, and utilities sectors experienced job losses. The report breaks down employment changes by industry, U.S. region, and establishment size, with small establishments contributing 52,000 jobs, medium establishments 43,000 jobs, and large establishments 59,000 jobs. ADP’s own revenue growth of 7.1% and impressive gross profit margins of 48.2% reflect its strong market position in employment services.

In terms of pay, the report indicates that year-over-year gains for job-stayers slowed to 4.6 percent, with job-changers seeing an increase of 6.5 percent in their annual pay. The pay premium for those changing jobs matched a series low at 1.9 percentage points. Pay insights also reveal disparities across industry sectors and firm sizes, with goods-producing sectors and larger firms generally seeing higher pay growth for job-stayers.

The data for this report is derived from ADP’s anonymized and aggregated payroll data, providing a high-frequency, near real-time measure of U.S. employment. The February figures were revised, showing an increase from the initially reported 77,000 jobs to 84,000 jobs added. According to InvestingPro, ADP maintains strong financial health with consistent dividend payments for 52 consecutive years, demonstrating its stability in providing reliable employment data. For detailed insights into ADP’s performance metrics and 15+ additional ProTips, investors can access the comprehensive Pro Research Report available on InvestingPro.

The next release of the ADP National Employment Report is scheduled for April 30, 2025. This report is part of ADP’s commitment to enhancing public understanding of the labor market by providing valuable insights into private-sector employment trends. The company’s strong market position is reflected in its financial metrics, which can be explored in detail through the comprehensive analysis available on InvestingPro.

The information reported is based on a press release statement from ADP, Inc.

In other recent news, Automatic Data Processing Inc. (ADP) reported its second-quarter fiscal 2025 earnings, showcasing an 8% revenue growth, which surpassed analysts’ expectations. The company reported an adjusted earnings per share (EPS) increase of 10%, slightly above forecasts. ADP’s Employer Services segment achieved record new business bookings, contributing to its robust performance. The company maintained its full-year guidance, projecting consolidated revenue growth of 6-7% and adjusted EPS growth of 7-9%. In a strategic move, ADP announced a partnership with Fiserv, integrating Fiserv’s Clover platform with ADP’s Run solution for small businesses. Additionally, ADP’s acquisition of Workforce Software is progressing well, enhancing its product offerings. Analysts from firms such as Jefferies and TD Cowen have noted the company’s strong end to the calendar year and strategic initiatives. These developments reflect ADP’s continued growth and market position despite some near-term challenges.

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