Economists had estimated that private payrolls rose by 175,000, according to Bloomberg.
Employment slumped across all the goods-producing industries, including construction and manufacturing.
Services hiring increased across industries except in information.
"Smaller companies are struggling to maintain payrolls while large companies are expanding at a healthy pace," added Mark Zandi, the chief economist of Moody's Analytics, in the release.
This release comes ahead of the Bureau of Labor Statistics' nonfarm payrolls report on Friday, which is forecast to show private payrolls rose by 170,000 last month. That would extend the longest streak of private-sector job growth on record.