ADP® Reports Increased Private Sector Employment and Compensation Gains in February

According to the ADP® National Employment Report™ released on Wednesday, nonfarm private sector employment increased by 140,000 jobs in February, and annual pay was up 5.1% year-over-year.

The ADP National Employment Report is produced by the ADP Research Institute® in collaboration with Stanford Digital Economy Lab (“Stanford Lab”). The ADP National Employment Report is an independent measure and high-frequency view of the private sector labor market based on actual, anonymized payroll data of more than 25 million US employees. The report details the current month’s total private employment change, and weekly job data from the previous month. Because the underlying ADP payroll databases are continuously updated, the report provides near real-time measure of US employment. This measure reflects the number of employees on ADP client payrolls (Payroll Employment) to provide a richer understanding of the labor market. ADP’s pay measure uniquely captures the earning of a cohort of almost 10 million employees over a 12-month period.

Commenting on the results of the January report, ADP Chief Economist Nela Richardson said:

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.”