WASHINGTON – February brought the strongest private sector job growth in seven months, according to a new employment report released Wednesday, though economists revised January’s figures significantly downward.
The ADP national employment report revealed that private companies added 63,000 positions last month, surpassing the 50,000 jobs economists had predicted and representing the best performance since July 2025. However, January’s job growth was revised down to just 11,000 from the previously reported 22,000.
Healthcare and education sectors drove most of the job creation, contributing 58,000 new positions. Construction companies hired 19,000 additional workers, while manufacturing businesses eliminated 5,000 jobs.
This ADP data, created in partnership with Stanford Digital Economy Lab, comes ahead of Friday’s official employment report from the U.S. Bureau of Labor Statistics. Historically, ADP numbers have not been reliable predictors of the government’s official employment figures.
Economic forecasters expect Friday’s report to show 59,000 new nonfarm jobs for February, following January’s 130,000 increase. Private sector employment is projected to rise by 65,000 after January’s 172,000 gain, while unemployment should remain at 4.3%.
Employment conditions have found their footing after last year’s instability, which economists attributed to uncertainty surrounding import duties.
The Supreme Court recently overturned President Donald Trump’s extensive tariff program, which had been implemented using emergency powers legislation. Trump responded by establishing a 10% worldwide tariff for 150 days to replace some emergency measures, later announcing plans to increase it to 15%.
The combination of stable employment and persistent inflation is likely to keep the Federal Reserve from changing interest rates at this month’s policy meeting. Energy costs have surged due to the ongoing U.S.-Israeli military conflict with Iran.
This Middle East situation has caused traders to reduce expectations for rate cuts this year, fearing it could worsen inflation. Chances for a rate reduction at the Fed’s June 16-17 meeting have dropped considerably. The central bank maintained its key interest rate between 3.50%-3.75% during January’s meeting.
Wednesday’s ADP report also indicated wage growth remained consistent. Workers staying in their current positions saw annual pay increases hold steady at 4.5%, while those switching jobs experienced wage growth of 6.3%, down slightly from January’s 6.4%.
