US Private Sector Adds 63,000 Jobs in February, Indicating Gradual Labour Market Improvement
Private employers in the United States created 63,000 jobs in February, reflecting a modest improvement in hiring activity, according to the latest ADP National Employment Report released on March 4, 2026.
The report, published by ADP, offers an early look at labour market conditions ahead of the official monthly employment figures issued by the U.S. Bureau of Labor Statistics.
The data is derived from anonymised payroll records of more than 26 million private-sector workers across the United States.
Hiring Picks Up After Weak January
February’s job gains represented a clear improvement compared with the previous month. Hiring activity in January was weaker than initially estimated, with the figure revised down to 11,000 new jobs from the earlier estimate of 22,000.
Although February’s increase remains moderate, it marks the largest monthly rise in private-sector employment since July 2025, pointing to a gradual recovery in labour demand after a slow start to the year.
Service Industries Lead Job Creation
The majority of employment growth came from service-related sectors, which continued to drive hiring momentum.
The education and health services sector recorded the strongest gains, adding about 58,000 jobs in February. The information services industry contributed roughly 11,000 new positions, while financial activities added approximately 2,000 jobs.
Overall, service-providing industries accounted for around 47,000 of the total jobs added, highlighting sustained demand for labour in these areas.
Mixed Performance Across Other Sectors
Employment trends were uneven across different industries during the month.
Among goods-producing sectors, construction posted the largest increase, with about 19,000 jobs added. The natural resources and mining segment also reported a small gain of around 2,000 positions.
However, some industries experienced job losses. Manufacturing employment declined by roughly 5,000 jobs, while professional and business services saw one of the steepest drops, with payrolls decreasing by about 30,000 positions. Employment in trade, transportation and utilities also edged lower by nearly 1,000 jobs.
Small Businesses Drive Most Hiring
The bulk of job creation in February came from smaller companies.
Businesses with fewer than 50 employees added close to 60,000 jobs, accounting for the majority of the month’s employment gains.
In contrast, mid-sized firms with 50 to 499 workers reported a net decline of roughly 7,000 jobs, while large companies employing more than 500 people added about 10,000 positions.
Wage Growth Holds Steady
The report also indicated stable wage growth across the labour market.
Annual pay growth for employees who remained with their current employer was 4.5% in February, unchanged from January.
Workers who changed jobs continued to experience stronger pay increases, with wages rising by an average of 6.3% annually. However, the difference between pay growth for job switchers and employees who stayed in their roles narrowed slightly compared with earlier months.
Summary
The ADP National Employment Report showed that US private-sector employment increased by 63,000 jobs in February 2026, representing the strongest monthly gain since July 2025. Hiring was largely driven by service industries, particularly education and health services, while construction also contributed to job growth. Smaller businesses accounted for most of the new jobs. Meanwhile, wage growth remained steady at 4.5% for employees staying in their roles and 6.3% for those changing jobs.
Disclaimer
This article is based on publicly available information and official statements. The content is intended for informational purposes only. The publication does not independently verify third-party claims or geopolitical assertions mentioned in international developments.