US private employers added 63,000 roles in February, beating expectations in the best monthly gains since July, according to the private payroll processor ADP.
Economists surveyed by Bloomberg had expected an increase of 50,000 in February, an improvement from the previous month’s lackluster gain of 22,000 roles, which was revised even lower Wednesday to 11,000 positions. But ADP’s data showed hiring “jumped” last month, with gains led by construction, education, and healthcare as manufacturing and business services shed positions.
“We’ve seen an increase in hiring and pay gains remain solid, especially for job-stayers,” ADP chief economist Nela Richardson said in a statement. “But with hiring concentrated in only a few sectors, our data shows no widespread pay benefit from changing jobs. In fact, the pay premium for switching employers hit a record low in February.”
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Pay was up 4.5% on an annual basis, ADP said, while the median pay change for job-changers was 6.3%.
Though the market will get a more complete read of February’s labor situation when the Labor Department releases its own employment data Friday, ADP’s print suggested the job market may be stabilizing following 2025’s narrative of dismal hiring rates, coupled with relatively low layoffs and evident job-hugging.
Still, job-seekers may have felt discouraged by Block’s (XYZ) AI-themed layoff announcement last week— even amid questions about how many of those cuts really had to do with technological advancements. Further layoff announcements have recently come from Whirlpool, eBay, and more.
Emma Ockerman is a reporter covering the economy and labor for Yahoo Finance. You can reach her at [email protected].
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