U.S. Private Payrolls Rise in March

U.S. private payrolls grew sharply in March as hiring increased across the board, which indicates a strong labor market that continues to support economic expansion.

Labor market momentum was also highlighted by a recent report that showed solid gains in employment in the services industries in March even though a sharp decline in new orders weighed on growth in the sector.

The Labor Department will publish its closely watched employment report on Friday.

The ADP National Employment Report showed private payrolls increased by 241,000 jobs in March after rising 246,000 in February.

The ADP report is jointly developed with Moody's Analytics. It said construction companies hired 31,000 workers in March and manufacturers added 29,000 jobs to their payrolls. Employment in the services sector increased by 176,000 jobs.

That was corroborated by the Institute for Supply Management's (ISM) non-manufacturing survey, which showed the ISM's employment sub-index rising to a reading of 56.6 in March from 55.0 in February.

The increase in services industry employment came despite the ISM non-manufacturing index falling 0.7 point to a reading of 58.8 as a measure of new orders declined 5.3 points. A reading above 50 indicates expansion in the sector, which accounts for more than two-thirds of U.S. economic activity.

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