ADP Sentiment Index Falls to 131, Manufacturing Plunges 18 Points
ADP Research’s Employee Motivation and Commitment Index dropped four points to 131 in February, marking its lowest reading since May 2025. Manufacturing worker sentiment plunged 18 points while professional, scientific, and technical services rose six points, highlighting uneven sector morale.
1. Employee Motivation Index Declines
ADP’s Employee Motivation and Commitment Index fell to 131 in February, down four points from January and touching its lowest level since May 2025. The index is compiled from a monthly survey of 2,500 U.S. working adults and tracks motivation and commitment trends over time.
2. Sectoral Sentiment Shifts
Sentiment among workers at large manufacturing firms plunged by 18 points, the biggest drop across the 10 sectors surveyed. In contrast, the professional, scientific, and technical services sector recorded a six-point increase in February, indicating diverging morale between industries.
3. Labor Market Constraints
December job openings fell to their lowest level since 2020, while the quits rate remained near 2%, well below the 3% peak in March 2022. Limited mobility and scarce opportunities appear to be weighing on overall worker confidence.
4. Potential Impact on ADP Services
Sustained declines in worker sentiment could dampen demand for ADP’s payroll and human capital management solutions if businesses hold off on expansions or headcount increases. ADP may face challenges in upselling services as clients navigate a cautious labor market.