Private Sector Jobs Rose Only 189,000 in March, ADP Says

By Kathleen Madigan 

Businesses hired at a mediocre pace last month, according to an employment survey released Wednesday.

Private payrolls in the U.S. increased by 189,000 jobs in March, said the national employment report compiled by payroll processor Automatic Data Processing Inc. and forecasting firm Moody's Analytics.

The number was far below expectations. Economists surveyed by The Wall Street Journal projected ADP would say 225,000 new jobs were added in March. The February ADP increase was revised 214,000 from 212,000.

"Job growth took a step back in March. The fallout from the collapse in oil prices and surge in value of the dollar is hitting the job market" the report said.

The ADP report is one of a few private-sourced job reports that come out ahead of the Bureau of Labor Statistics' employment situation report scheduled for Friday.

Economists expect the BLS will report March nonfarm payrolls--which include government positions--increased by 248,000 positions, down from an unexpectedly large 295,000 slots created in February. Winter weather, however, might hold down March job gains.

The March unemployment rate is forecast to hold at 5.5%.

According to ADP, small businesses remain the engine of job growth. Firms employing between 1-49 workers added 108,000 new workers last month. Medium-size businesses with payrolls of 50-499 workers added 62,000 employees. Large firms with 500 or more employees hired only 19,000 more workers.

Manufacturing cut 1,000 jobs in March, said ADP. The service sector hired 184,000 new employees. Construction payrolls increased by 17,000.

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