ADP National Employment Report: Private Sector Employment Increased by 63,000 Jobs in February; Annual Pay was Up 4.5%
MWN-AI** Summary
The February 2026 ADP National Employment Report reveals a modest growth in private sector employment, with an increase of 63,000 jobs, marking the strongest job gains since July 2025. The report, which analyzes anonymized payroll data from over 26 million U.S. private-sector employees, indicates that the construction and education/health services sectors drove this growth.
While the addition of jobs is a positive indicator, the report highlights a concerning trend: the pay premium for changing jobs has decreased significantly and reached a record low. Year-over-year pay growth for employees who remained in their positions, termed “job-stayers,” stood at 4.5%. In contrast, those who changed jobs saw their annual pay growth decline to 6.3%, suggesting that job-switching is no longer yielding substantial financial benefits.
The distribution of job gains varied across regions and establishment sizes. The South experienced the largest increase with 37,000 new jobs, followed by the West with 19,000, while the Midwest saw a slight decline of 4,000 jobs. Small businesses, defined as those with fewer than 50 employees, accounted for most job growth, adding 60,000 roles, whereas medium-sized establishments lost 7,000 positions.
Overall, the ADP report paints a picture of a recovering labor market characterized by limited wage growth for job-changers and stronger pay for those who remain in their current roles. As businesses navigate these dynamics, upcoming trends in employment and compensation will be crucial for economic stability. The next ADP National Employment Report will be released on April 1, 2026.
MWN-AI** Analysis
The February 2026 ADP National Employment Report reveals a modest gain of 63,000 private sector jobs, signaling a positive trajectory in employment but highlighting sectoral disparities. The strongest contributions came from the construction and education/health services industries, while the manufacturing and professional/business services sectors showed weakness. This mixed performance, with hiring concentrated in certain areas, may indicate a slowdown in broader labor market recovery.
The increase in annual pay by 4.5 percent for job-stayers underscores robust wage growth, though the pay premium associated with changing jobs has hit a new low. With job-switchers experiencing only a 6.3 percent increase in pay, this could reflect employers' hesitance to anchor talent with increased compensation amidst economic uncertainties. Therefore, potential workers should carefully evaluate job switch opportunities, as benefits may not be as compelling as in prior years.
Investors and business leaders should monitor these trends closely. The construction sector's growth may signal opportunities for investment in related industries, such as building materials and project management firms. Conversely, the dip in manufacturing employment aligns with broader concerns regarding supply chain disruptions and global economic challenges. Companies in these sectors should focus on enhancing productivity and adjusting operational strategies accordingly.
Furthermore, sustained wage growth in the labor market indicates inflationary pressures may persist, impacting monetary policy decisions by the Federal Reserve. Investors may look for sectors that typically outperform during inflationary periods, such as real estate and commodities.
In conclusion, while the February ADP report reflects incremental progress in job growth and wage increases, sector-specific dynamics and potential inflation pressures call for a cautious yet opportunistic approach to investment and workforce planning.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
ROSELAND, N.J., March 4, 2026 /PRNewswire/ -- Private sector employment increased by 63,000 jobs in February and pay was up 4.5 percent year-over-year according to the February ADP National Employment Report® produced by ADP Research in collaboration with the Stanford Digital Economy Lab ("Stanford Lab").
The ADP National Employment Report is an independent measure of the labor market based on the anonymized weekly payroll data of more than 26 million private-sector employees in the United States. ADP's Pay Insights captures over 15 million individual pay change observations each month. Together, the jobs report and pay insights use ADP's fine-grained data to provide a representative and high-frequency picture of the private-sector labor market.
"We've seen an increase in hiring and pay gains remain solid, especially for job-stayers," said Dr. Nela Richardson, chief economist, ADP. "But with hiring concentrated in only a few sectors, our data shows no widespread pay benefit from changing jobs. In fact, the pay premium for switching employers hit a record low in February."
February 2026 Report Highlights
View the ADP National Employment Report and interactive charts at www.adpemploymentreport.com.
JOBS REPORT
Private employers added 63,000 jobs in February
Hiring jumped in February, delivering the best showing for job gains since July 2025. Construction and education and health services led the growth.
Change in U.S. Private Employment: 63,000
Change by Industry
- Goods-producing: 16,000
- Natural resources/mining 2,000
- Construction 19,000
- Manufacturing -5,000
- Service-providing: 47,000
- Trade/transportation/utilities -1,000
- Information 11,000
- Financial activities 2,000
- Professional/business services -30,000
- Education/health services 58,000
- Leisure/hospitality 1,000
- Other services 6,000
Change by U.S. Regions
- Northeast: 11,000
- New England 9,000
- Mid-Atlantic 2,000
- Midwest: -4,000
- East North Central -8,000
- West North Central 4,000
- South: 37,000
- South Atlantic 5,000
- East South Central 6,000
- West South Central 26,000
- West: 19,000
- Mountain 3,000
- Pacific 16,000
Change by Establishment Size
- Small establishments: 60,000
- 1-19 employees 58,000
- 20-49 employees 2,000
- Medium establishments: -7,000
- 50-249 employees -3,000
- 250-499 employees -4,000
- Large establishments: 10,000
- 500+ employees 10,000
PAY INSIGHTS
Pay for job-stayers rose 4.5 percent in February
Pay growth for job-stayers was unchanged in February at 4.5 percent year-over-year. For job-changers, annualized pay growth slowed to 6.3 percent.
Median Change in Annual Pay
- Job-stayers 4.5%
- Job-changers 6.3%
Median Change in Annual Pay for Job-Stayers by Industry
- Goods-producing:
- Natural resources/mining 4.5%
- Construction 4.7%
- Manufacturing 4.9%
- Service-providing:
- Trade/transportation/utilities 4.4%
- Information 4.0%
- Financial activities 5.2%
- Professional/business services 4.3%
- Education/health services 4.3%
- Leisure/hospitality 4.6%
- Other services 4.1%
Median Change in Annual Pay for Job-Stayers by Firm Size
- Small firms:
- 1-19 employees 2.6%
- 20-49 employees 4.1%
- Medium firms:
- 50-249 employees 4.7%
- 250-499 employees 4.8%
- Large firms:
- 500+ employees 4.9%
To see Pay Insights by U.S. State, Gender, and Age for Job-Stayers, visit here:
The January total number of jobs added was revised from 22,000 to 11,000.
For additional information about the ADP National Employment Report, including historical files, employment and pay data, methodology, and a calendar of release dates, please visit https://adpemploymentreport.com/.
The March 2026 ADP National Employment Report will be released on April 1, 2026 at 8:15 a.m. ET.
About ADP Research
The mission of ADP Research is to make the future of work more productive through data-driven discovery. Companies, workers, and policy makers rely on our finely tuned data and unique perspective to make informed decisions that impact workplaces around the world.
To subscribe to monthly email alerts or obtain additional information about ADP Research, including employment and pay data, methodology, and a calendar of release dates, please visit https://www.adpresearch.com.
About ADP (NASDAQ: ADP)
ADP has been shaping the world of work with innovation and expertise for more than 75 years. As a global leader in HR and payroll solutions, ADP continuously works to solve business challenges for our clients and their workers, from simple, easy-to-use tools for small businesses to fully integrated platforms for global enterprises – and everything in between. Always Designing for People means we're focused on just that – people. We use our unmatched AI-driven insights and proven expertise to design innovative solutions that help people achieve greater success at work. More than 1.1 million clients across 140+ countries rely on ADP's exceptional service to support their people and drive their business forward. HR, Talent, Time Management, Benefits, Compliance, and Payroll. Learn more at ADP.com
ADP, the ADP logo, and Always Designing for People, ADP National Employment Report, and ADP Research are registered trademarks of ADP, Inc. All other marks are the property of their respective owners.
Copyright © 2026 ADP, Inc. All rights reserved.
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FAQ**
How does the job growth of 63,000 in February, as reported by Automatic Data Processing Inc. (ADP), compare to historical trends during the same month in previous years?
What sectors, particularly in the report by Automatic Data Processing Inc. (ADP), demonstrated the most significant employment gains in February, and what might this indicate about the current economic climate?
With the record low pay premium for job-switchers reported by Automatic Data Processing Inc. (ADP), what implications might this have for workers' mobility and employer retention strategies?
How does the year-over-year pay increase of 4.5% reported by Automatic Data Processing Inc. (ADP) reflect broader wage trends in the labor market, especially compared to inflation rates?
**MWN-AI FAQ is based on asking OpenAI questions about Automatic Data Processing Inc. (NASDAQ: ADP).
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