Private sector employment increased by 77,000 jobs in February and annual pay was up 4.7 percent year-over-year, according to the February ADP National Employment Report produced by ADP Research in collaboration with the Stanford Digital Economy Lab. The ADP National Employment Report is an independent measure and high-frequency view of the private-sector labor market based on actual, anonymized payroll data of more than 25 million U.S. employees.
The jobs report and pay insights use ADP’s fine-grained anonymized and aggregated payroll data to provide a representative picture of the private-sector labor market. The report details the current month’s total private employment change, and weekly job data from the previous month. Because the underlying ADP payroll databases are continuously updated, the report provides a high-frequency, near real-time measure of U.S. employment. This measure reflects the number of employees on ADP client payrolls to provide a richer understanding of the labor market. As of January 2025, ADP’s Pay Insights measure captures nearly 14.8 million individual pay change observations each month, up from nearly 10 million when it launched.
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“Policy uncertainty and a slowdown in consumer spending might have led to layoffs or a slowdown in hiring last month,” said Nela Richardson, chief economist, ADP. “Our data, combined with other recent indicators, suggests a hiring hesitancy among employers as they assess the economic climate ahead.”
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JOBS REPORT
Private employers added 77,000 jobs in February
Hiring slowed to the smallest level of gains since July, with trade and transportation, health care and education, and information showing job losses. Small business employment also fell.
| Category | Details |
|---|---|
| Change in U.S. Private Employment | 77,000 jobs added in February |
| Change by Industry Sector | |
| Goods-producing | 42,000 jobs added |
| – Natural resources/mining | -2,000 jobs |
| – Construction | 26,000 jobs |
| – Manufacturing | 18,000 jobs |
| Service-providing | 36,000 jobs added |
| – Trade/transportation/utilities | -33,000 jobs |
| – Information | -14,000 jobs |
| – Financial activities | 26,000 jobs |
| – Professional/business services | 27,000 jobs |
| – Education/health services | -28,000 jobs |
| – Leisure/hospitality | 41,000 jobs |
| – Other services | 17,000 jobs |
| Change by U.S. Regions | |
| Northeast | 55,000 jobs added |
| – New England | 34,000 jobs |
| – Middle Atlantic | 21,000 jobs |
| Midwest | 56,000 jobs added |
| – East North Central | 45,000 jobs |
| – West North Central | 11,000 jobs |
| South | -12,000 jobs |
| – South Atlantic | -26,000 jobs |
| – East South Central | 32,000 jobs |
| – West South Central | -18,000 jobs |
| West | -27,000 jobs |
| – Mountain | -2,000 jobs |
| – Pacific | -25,000 jobs |
| Change by Establishment Size | |
| Small establishments | -12,000 jobs |
| – 1-19 employees | -17,000 jobs |
| – 20-49 employees | 5,000 jobs |
| Medium establishments | 46,000 jobs |
| – 50-249 employees | 15,000 jobs |
| – 250-499 employees | 31,000 jobs |
| Large establishments | 37,000 jobs |
| – 500+ employees | 37,000 jobs |
| Pay Insights | |
| Pay Gains in February | Stable |
| – Job-Changers | 6.7% year-over-year pay gain (down from 6.8%) |
| – Job-Stayers | 4.7% year-over-year pay gain (flat) |
| Median Change in Annual Pay for Job-Stayers by Industry Sector | |
| Goods-producing | |
| – Natural resources/mining | 4.4% |
| – Construction | 4.9% |
| – Manufacturing | 4.8% |
| Service-providing | |
| – Trade/transportation/utilities | 4.4% |
| – Information | 4.2% |
| – Financial activities | 5.1% |
| – Professional/business services | 4.5% |
| – Education/health services | 4.9% |
| – Leisure/hospitality | 4.8% |
| – Other services | 4.5% |
| Median Change in Annual Pay for Job-Stayers by Firm Size | |
| Small firms | |
| – 1-19 employees | 2.8% |
| – 20-49 employees | 4.4% |
| Medium firms | |
| – 50-249 employees | 4.9% |
| – 250-499 employees | 5.1% |
| Large firms | 5.0% |
| – 500+ employees | 5.0% |
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Source: PR Newswire
