Private sector employers added 140,000 jobs in February, following an increase of 107,000 jobs in January, according to the latest ADP National Employment Report.
Year-over-year pay gains for job-changers reached 7.6% in February, the first increase since November 2022. Meanwhile, job-stayers had the smallest gain since August 2021 at 5.1%.
“Job gains remain solid,” said Nela Richardson, ADP’s chief economist. “Pay gains are trending lower but are still above inflation. In short, the labor market is dynamic, but doesn’t tip the scales in terms of a Fed rate decision this year.”
The industries with the most job gains for the month included leisure/hospitality (+41,000), construction (+28,000), and trade/transportation/utilities (+24,000). Natural resources/mining (-4,000) and information (-2,000) were the only major industries to decline.
Job growth by region ranged from +20,000 jobs (Northeast) to +42,000 (West). By establishment size, medium-sized businesses added the most jobs (+69,000), and small businesses added the least (+13,000).
