U.S. private-sector employers added about 140,000 jobs in February, showing the labor market remains on solid footing, payroll processor ADP reported Wednesday.
Last month's total fell slightly short of economists' expectations for a net gain of 150,000 jobs, but above ADP's January tally, which was revised upward to 111,000 hires.
Most of February's gains came in services (+110,000 jobs), specifically leisure and hospitality, which added 41,000 jobs.
“The economy still appears to be moving forward and hiring is maintaining that momentum,” Nela Richardson, ADP chief economist, said during a call with reporters Wednesday.
The ADP National Employment Report showed that wage growth – a focal point for the Federal Reserve as it seeks to reduce interest rates – continued to slow for those “remaining in employment.” Their wage gains measured 5.1% last month, the smallest increase since August 2021, ADP reported.
However, for the first time in more than a year, people who changed jobs saw an acceleration in the pay increases they received. Year-on-year wage gains measured 7.6% in February, up from 7.2% and recording the first increase since November 2022.
Salary increases for job changers are more sensitive to labor market dynamics, Richardson said.
While the ADP tabulations do not typically correlate with the official federal jobs report (due Friday), they are sometimes considered an indicator of overall hiring activity, which has remained strong.
Economists anticipate that February's jobs report will show a net gain of 200,000 jobs, according to FactSet consensus estimates.
