Small Businesses Drove U.S. Job Gains in March: Report
Education and health care were the busiest sectors for hiring, with construction close
By Mark Hallum April 3, 2026 11:25 am
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The U.S. economy in March made up for job losses that negatively impacted the unemployment rate in February, indicating a correction in the market, according to unemployment data released Friday.
Private employers with headcounts of fewer than 19 people did the majority of the nation’s hiring last month, with around 112,000 additions to their teams, according to data from payroll services firm ADP. Most new jobs were in the education and health care sectors, ADP data showed.
This was in stark contrast to how companies with over 500 employees planned for the near future. Those larger companies announced 4,000 job terminations in March, the data showed.
The data somewhat aligned with what was reported by the U.S. Bureau of Labor Statistics Friday morning. BLS data showed an increase of 178,000 jobs in March and an unemployment rate of 4.3 percent, a small change from February when unemployment stood at 4.4 percent.
In February, the unemployment rate was impacted by 92,000 job cuts.
“Overall hiring is steady, but job growth continues to favor certain industries, including health care,” ADP Chief Economist Nela Richardson said in a statement. “In March, this solid performance was accompanied by a boost in pay gains for job-changers.”
Median annual pay in March across the country was $61,900 per year, with raises averaging 4.5 percent for those staying put and 6.6 percent for people who changed jobs, ADP said.
Education and health service, a single category for ADP, was up by 58,000 jobs, while construction followed with 30,000 jobs.
Companies with more than 500 employees didn’t see the biggest exodus from payroll, however.
That dubious honor went to companies with 20 to 49 employees, which eliminated 27,000 positions, and midsize employers with 50 to 249 people, which eliminated 26,000 jobs in March.
The sectors where those losses were felt the most were in the category of trade, transportation and utilities, which lost about 58,000 jobs, and manufacturing with 11,000 jobs lost, according to ADP.
Mark Hallum can be reached at mhallum@commercialobserver.com.
