ADP Says US Private Employers Added 242,000 Jobs in February, Better than Estimated

Private sector employment increased by 242,000 jobs in February and annual pay was up 7.2 percent year-over-year, according to the February ADP® National Employment report.

Private payrolls grew better than expected with companies adding jobs at a brisk pace in February. Ahead of the report, Dow Jones analysts were forecasting a 205,000 jobs increase. Figures from January were upwardly revised to 119,000 from 106,000.

Wage growth decelerated slightly, down 0.1 percentage point from a month ago. Job changers saw growth of 14.3%, compared to 14.9% in January.

By sector, leisure and hospitality led job growth with 83,000 additions. Financial activities added 62,000 while manufacturing showed a robust 43,000 gain as the industry benefited from a mild winter.

Traders are now looking ahead to Friday’s U.S. Non-Farm Payrolls report, which is expected to show growth of 225,000 in February, with the unemployment rate holding steady at 3.4%, according to Dow Jones estimates.

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