Private Sector Added 63K Jobs in February

Private Sector Hiring Tops Expectations in February

Private sector employers added 63,000 jobs in February, beating economists’ expectations and signaling modest growth in the labor market, according to new data from payroll processing firm ADP.

Economists had forecast a gain of around 50,000 jobs. The February figure marks an improvement over January, when job growth was revised downward to 11,000 from an initially reported 22,000.

Hiring Concentrated in Key Sectors

While job creation continued, ADP’s chief economist Nela Richardson noted that hiring gains remain concentrated in only a few areas of the economy.

Education and health services led the way, adding 58,000 jobs. Construction followed with 19,000 new positions, while the information sector added 11,000 jobs and other services gained 6,000.

Smaller gains were reported in financial activities and natural resources and mining, which each added 2,000 jobs. Leisure and hospitality added 1,000 positions.

Some Industries Continue to Shed Jobs

Not all sectors experienced growth. Professional and business services saw the largest decline, losing 30,000 jobs in February. Manufacturing also lost 5,000 positions, while trade, transportation and utilities shed about 1,000 jobs.

The data also shows differing trends depending on company size. Small businesses with fewer than 50 employees added 60,000 jobs, while medium-sized businesses with 50 to 499 workers lost 7,000. Large businesses with 500 or more employees added 10,000 jobs.

Wage Growth Remains Steady

Pay gains were relatively stable compared to last month. Workers who stayed in their jobs saw wages increase 4.5% from the previous year.

Meanwhile, workers who switched employers saw pay increases of 6.3%, slightly lower than January’s 6.4% gain — marking what ADP described as a record low premium for changing jobs.

The latest report suggests hiring continues, though growth remains uneven across industries.