ADP Says Business Payroll Growth Accelerated In February

Businesses grew their payrolls at an accelerated pace in February, data from payroll processor ADP showed on Wednesday.

ADP said that private sector employment grew by 140,000 in the month, up from a revised 111,000 in January. The prior month was initially reported at 107,000.

“Job gains remain solid. Pay gains are trending lower but are still above inflation. In short, the labor market is dynamic, but doesn’t tip the scales in terms of a Fed rate decision this year,” ADP chief economist Nela Richardson said.

The construction sector added 28,000 jobs and manufacturing added 6,000. Natural resources and mining, which includes energy extraction, 4,000.

Leisure and hospitality payrolls grew by 41,000. Trade, transportation, and utilities added 24,000. The financial sector added 17,000 jobs and professional and business services added 5,000. There were 11,000 jobs added to education and health services businesses. Other services added 14,000 jobs.

Information technology payrolls shrank by 2,000.

Pay gains for job-changers accelerated for the first time in more than a year, rising to 7.6 percent from 7.2 percent, ADP said. Workers who stayed in their jobs saw annual pay gains of 5.1 percent. The biggest job gains were in leisure and hospitality, where pay grew by 5.9 percent.