Private sector employment in the United States increased by 62,000 jobs in March 2026, according to the latest ADP National Employment Report® produced in collaboration with the Stanford Digital Economy Lab. While overall hiring remains steady, the labor market continues to show significant fragmentation by industry and establishment size. Job growth was primarily driven by small businesses and the education and health services sector, while trade, transportation, and utilities saw a notable decline. Pay growth for job-stayers remained unchanged at 4.5%, though job-changers saw an acceleration in annual pay gains to 6.6%.
Total Job Growth: Private employers added 62,000 jobs, a slight cooling from the revised February figure of 66,000.
Small Business Resilience: Establishments with 1–19 employees were the sole engine of growth, adding 112,000 positions, while medium and large firms reported net losses.
Sector Divergence: Education and health services led gains with 58,000 new jobs; conversely, trade, transportation, and utilities shed 58,000 roles.
Regional Performance: The South dominated hiring with 101,000 new jobs, offsetting significant declines in the Northeast (-29,000) and Midwest (-26,000).
Pay Trends: Annual pay for job-stayers rose 4.5% year-over-year. Financial activities led pay growth for stayers at 5.2%.
The goods-producing sector added 30,000 jobs, bolstered by construction (+30,000) and natural resources/mining (+11,000), which offset an 11,000-job decline in manufacturing. In the service-providing sector, which added a net 32,000 jobs, the gains were concentrated in health and education. Information services also showed strength, adding 16,000 roles.
"Overall hiring is steady, but job growth continues to favor certain industries, including health care," said Dr. Nela Richardson, chief economist at ADP. "In March, this solid performance was accompanied by a boost in pay gains for job-changers."
| Establishment Size | Job Change | Pay Change (Stayers) |
| Small (1-49 employees) | +85,000 | 2.7% - 4.1% |
| Medium (50-499 employees) | -20,000 | 4.7% - 4.8% |
| Large (500+ employees) | -4,000 | 4.9% |
The data indicates that while smaller firms are doing the bulk of the hiring, larger firms are offering higher year-over-year pay increases for their existing workforce.
The next ADP National Employment Report is scheduled for release on May 6, 2026.
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