Core Insights - Private sector employment increased by 63,000 jobs in February 2026, with annual pay rising by 4.5% year-over-year [1] - The report indicates a concentration of hiring in specific sectors, with a record low pay premium for job changers [1] Employment Report - Private employers added 63,000 jobs in February, marking the best job gains since July 2025 [1] - Job growth by industry: - Goods-producing: 16,000 - Manufacturing: -5,000 - Construction: 19,000 - Natural resources/mining: 2,000 - Service-providing: 47,000 - Education/health services: 58,000 - Professional/business services: -30,000 - Financial activities: 2,000 - Information: 11,000 - Trade/transportation/utilities: -1,000 [1] Regional Employment Changes - Employment changes by U.S. regions: - Northeast: 11,000 - South: 37,000 - West: 19,000 - Midwest: -4,000 [1] Establishment Size Impact - Job changes by establishment size: - Small establishments (1-19 employees): 58,000 - Medium establishments: -7,000 - Large establishments (500+ employees): 10,000 [1] Pay Insights - Pay for job-stayers rose by 4.5% year-over-year, while pay growth for job-changers slowed to 6.3% [1] - Median change in annual pay for job-stayers by industry: - Manufacturing: 4.9% - Construction: 4.7% - Education/health services: 4.3% [1] Revision of Previous Data - The total number of jobs added in January was revised from 22,000 to 11,000 [1]

Core Insights - Private sector employment increased by 41,000 jobs in December, with a year-over-year pay increase of 4.4% [1][10] - The ADP National Employment Report provides an independent measure of the labor market based on anonymized payroll data from over 26 million private-sector employees in the U.S. [2] Employment Changes - The increase in jobs was primarily driven by the education and health services, and leisure and hospitality sectors [5] - The breakdown of job changes by industry shows a loss of 3,000 jobs in goods-producing sectors and a gain of 44,000 jobs in service-providing sectors [6] - Regional job changes included gains of 40,000 in the Northeast, 9,000 in the Midwest, and 54,000 in the South, while the West saw a loss of 61,000 jobs [7][9] Industry-Specific Insights - Notable job changes by industry included: - Education/health services: +39,000 - Leisure/hospitality: +24,000 - Professional/business services: -29,000 - Manufacturing: -5,000 [8] Pay Insights - Pay growth for job-stayers remained at 4.4% year-over-year, while pay growth for job-changers increased to 6.6% from 6.3% [10] - Median pay changes for job-stayers varied by industry, with financial activities at 5.2% and leisure/hospitality at 4.5% [14] - Pay growth for job-stayers by firm size showed small firms at 2.3%, medium firms at 4.6%, and large firms at 4.8% [21]

Core Viewpoint - Major market assets showed a moderate reaction to new data indicating a decline in private sector employment, particularly in small businesses in the Northeast U.S. [1] Employment Data - ADP reported a decrease in hiring for November by 32,000 jobs, primarily affecting small businesses [1] - The decline in employment is attributed to factors such as tariffs and increased operational costs that small companies struggle to absorb [1] Economic Implications - The response from small businesses to rising costs typically involves cutting expenses, with labor being their largest cost component [1]