ADP estimates that US private sector employment increased by +63,000 (vs +45,000 expected) in February, while job-stayer pay growth held at +4.5% YoY, indicating a moderate rebound in hiring with wage growth remaining steady.

• The +63,000 increase in private employment marked the strongest monthly job gain since July 2025, signaling a pickup in hiring after weaker readings in recent months.

• Goods-producing industries added +16,000 jobs overall, led by construction (+19,000) and natural resources and mining (+2,000), while manufacturing posted a decline of -5,000 jobs.

• Service-providing industries accounted for the majority of gains with +47,000 jobs, driven primarily by education and health services (+58,000), while professional and business services saw the largest decline at -30,000.

• Regionally, employment increased in the South (+37,000), West (+19,000), and Northeast (+11,000), while the Midwest recorded a decline of -4,000 jobs.

• Small establishments accounted for the bulk of hiring with +60,000 jobs, including +58,000 at firms with 1-19 employees, while medium-sized firms shed -7,000 jobs and large establishments added +10,000.

• Pay growth for job-stayers remained unchanged at +4.5% YoY in February, indicating steady wage growth for workers who stayed with the same employer.

• Pay growth for job-changers slowed to +6.3% YoY (down from +6.4% YoY), and ADP noted that the wage premium for switching employers declined to a record low in February, suggesting reduced pay advantages for workers changing jobs.