Hiring sees continued strength
The ADP March jobs report was published on April 4, 2018. It offered a deeper insight into employment trends across different sectors in the US employment market. ADP and Moody’s analytics prepare this monthly report.
Mark Zandi, the chief economist at Moody’s Analytics, said that the US job market is roaring, and the growth rate of jobs is twice that of labor force growth. This report points out that the jobs market is getting hotter every month and could lead to overheating in the future, forcing the Federal Reserve to take action sooner than expected.
Sectors that improved last month
As per the March ADP employment report, job growth in the manufacturing (IJH) sector has been the highest. There were 15,000 new jobs added in the sector in March compared to a loss of 1,000 jobs in February. The financial (XLF) sector was also reported to have seen a steep increase in jobs last month. The sectors that witnessed falls in hiring in March were the leisure and hospitality sectors (PEJ) and the healthcare (XLV) sector.
A key takeaway from the ADP March employment report
The outlook for the employment market as well as the US economy remains strong despite the disruptions caused by tariff wars and political uncertainty at the White House. Unless there’s a change in the narrative from the US Fed, the fear of rising rates is likely to return and haunt the bond markets (BND). Watch out for March’s non-farm payrolls data—a strong print could push bond yields higher and cause further pain for bond investors.