Employment in ADP, known as the "small non-agricultural sector", rebounded more than expected, wages for job hoppers accelerated, and the number of new jobs in the service industry once again led the increase.

On Wednesday, April 3, the U.S. ADP employment report showed that U.S. ADP employment increased by 184,000 in March, exceeding expectations of 150,000, and the previous value was 140,000.

While employment rebounded more than expected, salary growth for those who stayed employed was unchanged from the previous month, at 5.1%. For those changing jobs, year-on-year wage growth jumped to 10%, rising for the second consecutive month.

Looking at different industries, only the number of employees in the professional services industry has declined, while employment in other industries has still increased.

ADP data showed that the service industry, including leisure and hotels, education and medical services, continued to lead the gains in March, with employment increasing by 142,000, an increase of 110,000 last month, with employment in the leisure and hotel industry recording a record high of 7 last year. The largest increase since last month, employment surged by 63,000 people, an increase of 41,000 people last month; manufacturing employment increased by 1,000 people, an increase of 6,000 people last month; construction industry employment increased by 33,000 people, an increase of 28,000 people last month.

In terms of company size, the number of employees in medium-sized enterprises with 50-249 employees increased the most, reaching 63,000, while the number of employees in small enterprises with 20-49 employees decreased, with a decrease of 11,000.

ADP chief economist Nela Richardson said:

“What was surprising in March was not just the wage growth, but also the industry categories in which wages grew – construction, financial services and manufacturing were the three industries with the biggest salary increases for job-changers.

Inflation has been cooling, but our data shows wages for goods and services are heating up. "

After the U.S. March ADP data was released, U.S. stocks continued their decline before the market opened, U.S. bond yields continued to rise, and spot gold fell in the short term.

Futures on the three major U.S. stock indexes maintained their decline, with Nasdaq 100 futures falling 0.3%.

The U.S. 10-year Treasury bond yield rose by more than 3bp and is now at 4.403%.

Spot gold's short-term decline expanded to $5, temporarily trading at $2,268 per ounce.

In the early morning of the next day, Federal Reserve Chairman Powell will deliver a speech at the 2024 Business, Government and Society Forum hosted by the Stanford Business School. At that time, the market will pay attention to his speech on monetary policy.

It is worth noting that on Friday night, the U.S. Department of Labor will release non-farm employment data, which is more closely watched by the market. There may be big differences between the two employment reports - the number of new jobs in ADP has been lower than that of the U.S. for 7 consecutive months. The number of new non-farm jobs announced by the Department of Labor. Some analysts said this sent a signal that "the situation is getting worse."

According to market expectations, new non-agricultural employment in March will fall to 214,000, the unemployment rate will remain flat and fall slightly to 3.8%, and the average weekly wage growth will slow from 4.3% to 4.1% year-on-year, which means that the labor market will have Cooled down.