2 April 2014, 18:18  Employment in the U.S. private sector showes a notable increase

Employment in the U.S. private sector showed a notable increase in the month of March, according to a report released by payroll processor ADP on Wednesday, with the report also showing a substantial upward revision to the job growth in the previous month. ADP said private sector employment increased by 191,000 jobs in March following an upwardly revised increase of 178,000 jobs in February. While the job growth in March came in slightly below estimates for an addition of 195,000 jobs, the job growth in February was well above the previously reported increase of 139,000 jobs. Paul Ashworth, Chief U.S. Economist at Capital Economics, said the job growth in March adds to other evidence that the economy is beginning to rebound after the weather-related weakness over the preceding few months. "Data on activity and employment in March is still pretty limited," Ashworth said. "But what we know is that employment growth picked up, motor vehicle sales hit a seven-year high and consumer confidence rebounded to a six-year high." He added, "This is exactly what we would have expected to see if the weather really was responsible for the run of weak data going back to December." The report said employment in service-providing industries increased by 164,000 jobs in March following an upwardly revised increase of 153,000 jobs in February. ADP noted that the professional/business services sector contributed the most to the job growth in service-providing industries, adding 53,000 jobs. Additionally, goods-producing industries added 28,000 jobs in March, slightly faster than the upwardly revised increase of 25,000 jobs in February. Most of the growth in employment in goods-producing industries came from the construction sector, which added 20,000 jobs. The report also showed that employment at small businesses increased by 72,000 jobs in March, while employment at large and medium-sized businesses rose by 67,000 jobs and 52,000 jobs, respectively. Friday morning, the Labor Department is scheduled to release its monthly employment report, which includes both private and public sector jobs. "To the extent that it can be trusted, this latest ADP survey supports our existing forecast that the official figures will show non-farm payroll employment increased by 200,000 last month," Ashworth said.

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