U.S. private sector adds 77,000 jobs in February, pay up 4.7%

ROSELAND, N.J. - The U.S. private sector saw an increase of 77,000 jobs in February, a deceleration in hiring compared to previous months, while annual pay rose by 4.7 percent, according to the latest ADP National Employment Report. The report comes from ADP, a $127.5 billion market cap company and prominent player in Professional Services, which has demonstrated impressive financial stability with 26 consecutive years of dividend increases. The report, produced by ADP Research in partnership with the Stanford Digital Economy Lab, offers a snapshot of employment trends based on payroll data from over 25 million U.S. workers.

February’s job growth was the smallest since July, with declines particularly noted in trade and transportation, health care and education, and the information sector. Small business employment also experienced a downturn. The distribution of job changes across industries was mixed, with the goods-producing sector adding 42,000 jobs, led by gains in construction and manufacturing, and the service-providing sector contributing 36,000 jobs, bolstered by increases in financial activities and professional/business services.

Regionally, the Northeast and Midwest posted job gains, while the South and West experienced declines. By business size, medium-sized establishments led the growth, whereas small establishments reported a loss in employment numbers.

In terms of pay, job-changers saw a slight decrease in year-over-year pay gains, from 6.8 percent in January to 6.7 percent in February. Pay gains for job-stayers remained stable at 4.7 percent. The report also provided insights into pay changes by industry and firm size, with large firms showing the highest median annual pay increase for job-stayers.

ADP’s chief economist, Nela Richardson, commented on the findings, attributing the hiring slowdown to policy uncertainty and reduced consumer spending, which may have prompted employers to reassess their economic outlook and become more hesitant in hiring.

The February findings are part of ADP’s commitment to offering deeper insights into the U.S. labor market and aiding businesses and governments with credible information. The company’s strong market position is reflected in its robust financial performance, with revenue reaching $19.9 billion and maintaining an impressive 48.2% gross profit margin. The ADP National Employment Report is released monthly and is available to the public free of charge.Want deeper insights into ADP’s financial health and market position? InvestingPro offers exclusive access to detailed financial analysis, including 15+ additional ProTips and comprehensive valuation metrics. A full Pro Research Report is available for ADP, one of 1,400+ top US stocks covered in-depth on the platform.

The next report is scheduled for release on April 2, 2025, at 8:15 a.m. ET. With ADP’s stock trading near its 52-week high of $322.84 and currently showing signs of being overvalued according to InvestingPro’s Fair Value analysis, investors may want to monitor the company’s upcoming earnings report, scheduled for April 30, 2025. This article is based on a press release statement from ADP, Inc.

In other recent news, Automatic Data Processing Inc. (ADP) reported its second-quarter fiscal 2025 earnings, showing an 8% revenue growth year-over-year, which surpassed analysts’ expectations. The company also recorded a 10% increase in adjusted earnings per share (EPS), slightly above forecasts, signaling strong performance in their Employer Services segment with record new business bookings. ADP maintained its full-year guidance, projecting consolidated revenue growth of 6-7% and adjusted EPS growth of 7-9%, despite anticipating some softness in the third quarter due to foreign exchange headwinds and integration expenses from recent acquisitions.

In other developments, ADP announced a strategic partnership with Fiserv, aimed at enhancing its small business solutions through integration with Fiserv’s Clover platform. The acquisition of Workforce Software is progressing as planned, expected to bolster ADP’s product offerings and market position. Additionally, ADP’s expansion efforts, including the integration of the Clover point-of-sale platform with ADP Run, are anticipated to strengthen its competitive edge.

Analysts from Jefferies and TD Cowen noted ADP’s stable performance and strategic initiatives, with Jefferies highlighting the partnership with Fiserv as an exciting development. ADP’s consistent growth and strategic focus continue to position the company well in the market, as reflected in their robust financial results and strategic partnerships.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.