ADP Sees 63,000 Private Jobs Added in February, Best Since July

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ADP reported US private payrolls rose by 63,000 jobs in February, surpassing the 50,000 estimate and marking the strongest monthly gain since July. Construction, education and healthcare led growth while manufacturing shed roles, and annual pay rose 4.5% as the job-changer pay premium hit a record low of 6.3%.

1. Payroll Gains Exceed Forecasts

ADP’s February private payroll report showed an addition of 63,000 jobs, beating the 50,000 forecast and marking the largest monthly increase since July. The prior month’s gain was revised down to 11,000 roles.

2. Sector Performance

Growth was concentrated in construction, education and healthcare, while manufacturing and business services experienced job declines. This divergence highlights uneven recovery across industries.

3. Wage Trends

Average pay across all workers rose 4.5% year-over-year, yet the premium for job-changers fell to a record low of 6.3%, indicating reduced wage incentives for switching employers.

4. Implications for ADP

The robust payroll data reinforces demand for ADP’s analytics services and may boost its data product offerings, though uneven sector trends suggest potential volatility in client usage.

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