Private Sector Employment Increased by 155k Jobs in March; Annual Pay was Up 4.6%

Staff Report From Georgia CEO

Thursday, April 3rd, 2025

Private sector employment increased by 155,000 jobs in March and annual pay was up 4.6 percent year-over-year, according to the March ADP® National Employment Report™ produced by ADP Research in collaboration with the Stanford Digital Economy Lab ("Stanford Lab"). The ADP National Employment Report is an independent measure and high-frequency view of the private-sector labor market based on actual, anonymized payroll data of more than 25 million U.S. employees.

The jobs report and pay insights use ADP's fine-grained anonymized and aggregated payroll data to provide a representative picture of the private-sector labor market. The report details the current month's total private employment change, and weekly job data from the previous month. Because the underlying ADP payroll databases are continuously updated, the report provides a high-frequency, near real-time measure of U.S. employment. This measure reflects the number of employees on ADP client payrolls (Payroll Employment) to provide a richer understanding of the labor market. As of January 2025, ADP's Pay Insights measure captures nearly 14.8 million individual pay change observations each month, up from nearly 10 million when it launched.

"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, ADP.

March 2025 Report Highlights*

View the ADP National Employment Report and interactive charts at www.adpemploymentreport.com.

JOBS REPORT

Private employers added 155,000 jobs in March
Manufacturing delivered stronger-than-average job gains for the second straight month. Construction hiring slowed. Natural resources and trade, transportation, and utilities lost jobs.

Change in U.S. Private Employment:     155,000

Change by Industry Sector

- Goods-producing:     24,000

  • Natural resources/mining     -3,000

  • Construction     6,000

  • Manufacturing     21,000

Service-providing:     132,000

  • Trade/transportation/utilities     -6,000

  • Information     3,000

  • Financial activities     38,000

  • Professional/business services     57,000

  • Education/health services     12,000

  • Leisure/hospitality     17,000

  • Other services     11,000

Change by U.S. Regions

Northeast:     89,000

  • New England     57,000

  • Middle Atlantic     32,000

- Midwest:     81,000

  • East North Central     76,000

  • West North Central     5,000

South:     27,000

  • South Atlantic     7,000

  • East South Central     24,000

  • West South Central     -4,000

West:     -41,000

  • Mountain     -12,000

  • Pacific     -29,000

Change by Establishment Size

Small establishments:     52,000

  • 1-19 employees     42,000

  • 20-49 employees     10,000

Medium establishments:     43,000

  • 50-249 employees     34,000

  • 250-499 employees     9,000

Large establishments:     59,000

  • 500+ employees     59,000

PAY INSIGHTS

Pay gains slowed in March
Year-over-year pay gains slowed to 4.6 percent for job-stayers and to 6.5 percent for job-changers. The pay premium for job-changers was 1.9 percentage points, matching a series low last seen in September.

Median Change in Annual Pay (ADP matched person sample)

- Job-Stayers     4.6% 
Job-Changers     6.5%

Median Change in Annual Pay for Job-Stayers by Industry Sector
- Goods-producing:                                                       

  • Natural resources/mining     4.3%

  • Construction     4.7%

  • Manufacturing     4.8%

Service-providing:                                               

  • Trade/transportation/utilities     4.3%

  • Information     4.0%

  • Financial activities     5.3%

  • Professional/business services     4.4%

  • Education/health services     4.7%

  • Leisure/hospitality     4.7%

  • Other services     4.4%

Median Change in Annual Pay for Job-Stayers by Firm Size
- Small firms:                                                                

  • 1-19 employees     2.9%
  • 20-49 employees     4.2%

- Medium firms:                                                             

  • 50-249 employees     4.8%

  • 250-499 employees     5.0%

- Large firms:                                                                

  • 500+     employees 4.9%

To see Pay Insights by U.S. State, Gender, and Age for Job-Stayers, visit here.

* Sum of components may not equal total due to rounding.

The February total number of jobs added was revised from 77,000 to 84,000. The historical data file and weekly data for the previous month are available at https://adpemploymentreport.com/.

To subscribe to monthly email alerts or obtain additional information about the ADP National Employment Report, including employment and pay data, interactive charts, methodology, and a calendar of release dates, please visit https://adpemploymentreport.com/.    

The April 2025 ADP National Employment Report will be released at 8:15 a.m. ET on April 30, 2025.