Washington: US private sector job growth beat analyst expectations in February, payroll firm ADP said Wednesday, but it warned that hiring was focused in just a few sectors.
Private employers added 63,000 jobs in February, ADP said, gaining more than the 48,000 that economists projected.
"We've seen an increase in hiring and pay gains remain solid, especially for job-stayers," said ADP chief economist Nela Richardson.
But she warned that hiring has been "concentrated in only a few sectors," adding that ADP data shows no broad pay benefit from changing jobs.
While the US unemployment rate has remained relatively low, experts have warned of a tepid hiring environment as employers grapple with higher business costs and uncertainty over tariffs.
Policymakers are also monitoring for any rapid deterioration of the jobs market.
For now, ADP said that hiring jumped in February in the "best showing for job gains since July 2025," led by construction, education and health services.
But the manufacturing sector lost 5,000 jobs, while professional and business services lost 30,000 roles.
The ADP figures are closely watched ahead of the government's key employment report, which is due to be released on Friday.
ADP said that wage growth for workers who stayed in their jobs was unchanged at 4.5 percent in February year-on-year.
For those who changed jobs, annualized pay growth cooled to 6.3 percent.
Private employers added 63,000 jobs in February, ADP said, gaining more than the 48,000 that economists projected.
"We've seen an increase in hiring and pay gains remain solid, especially for job-stayers," said ADP chief economist Nela Richardson.
But she warned that hiring has been "concentrated in only a few sectors," adding that ADP data shows no broad pay benefit from changing jobs.
While the US unemployment rate has remained relatively low, experts have warned of a tepid hiring environment as employers grapple with higher business costs and uncertainty over tariffs.
Policymakers are also monitoring for any rapid deterioration of the jobs market.
For now, ADP said that hiring jumped in February in the "best showing for job gains since July 2025," led by construction, education and health services.
But the manufacturing sector lost 5,000 jobs, while professional and business services lost 30,000 roles.
The ADP figures are closely watched ahead of the government's key employment report, which is due to be released on Friday.
ADP said that wage growth for workers who stayed in their jobs was unchanged at 4.5 percent in February year-on-year.
For those who changed jobs, annualized pay growth cooled to 6.3 percent.
