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Macro EconomyMediumUpdated×3•Originally published 4 March 2026•Updated 4 March 2026•
1 min read

US Private Sector Adds 63,000 Jobs in February as Job-Switcher Pay Premium Hits Record Low

Key Facts

1US private sector employment increased by 63,000 jobs in February.
2Annual pay was up 4.5 percent year-over-year.
3The report was produced in collaboration with the Stanford Digital Economy Lab.

The US private sector added 63,000 jobs in February, according to the ADP National Employment Report, exceeding expectations despite a sharp downward revision of January's data from 22,000 to 11,000. While health services and construction drove hiring, the report noted modest declines in manufacturing and trade, alongside a larger drop in professional and business services. Significantly, annualized pay growth for job-changers slowed to 6.3%, with the pay premium for switching employers hitting a record low, according to ADP’s chief economist. These cooling wage pressures provide a nuanced signal for the Federal Reserve as it monitors the labor market's influence on inflation. Market attention now shifts to the upcoming official non-farm payrolls (NFP) report, where forecasts project an addition of only 58,000 jobs, down from 130,000 last month. The latest figures highlight a cooling labor environment where growth persists in select sectors amid broader economic challenges.