Private sector employment in the US rose in March, indicating improved labor conditions. U.S. nonfarm employment increased by 201,000 in March compared with downwardly revised figure of 208,000 jobs in February, ADP report showed on Wednesday. Markets had expected the private sector payrolls to rise by 210,000 in the month.

“This month’s ADP National Employment Report removes any remaining doubt that private nonfarm payroll employment accelerated heading into 2011,” the report said.

Payrolls in the services sector rose 164,000 in March, marking a gain for fifteen straight months. Manufacturing jobs increased 37,000, its sixth consecutive monthly gain.

However, construction sector’s payroll additions remained weak, dropping by 5,000 to in March, taking the total employment reduction in the sector to 2,126,000 since January 2007.

Employment in small businesses, defined as those with fewer than 50 workers, rose 102,000 in March. Payrolls in medium-size businesses increased 82,000 in the month.