ADP Private Payrolls Report: Job Growth Slows To 63,000 In February

The latest ADP National Employment Report shows that U.S. private sector job growth slowed in February, with 63,000 jobs added, well below the pace seen in prior months.

While the labor market continues to expand, the report suggests momentum may be cooling, particularly after stronger job gains through much of 2025.

ADP data often serves as an early signal for the broader Nonfarm Payrolls report, though the two datasets can diverge month‑to‑month.

The Snapshot

• ADP Private Payrolls (Feb 2026): +63,000
• Previous Month: +11,000
• Trend: Job growth remains positive but uneven over the past year.

The chart below shows the monthly change in private employment over the past 12 months, highlighting the latest February reading.

Monthly Change in U.S. Private Employment (Last 12 Months)

What This Data Tells Us

The labor market remains resilient but inconsistent.

Over the past year, monthly private payroll changes have ranged from strong gains above 100,000 jobs to temporary contractions, indicating that hiring momentum has not been perfectly steady.

February’s +63,000 increase suggests:

• Hiring continues, but at a moderate pace
• Businesses may be growing more cautious about expanding payrolls
• Labor demand is still present but less explosive than earlier cycles

In other words, the labor market is still adding jobs, but the rate of growth is not accelerating.

Why Markets Watch ADP

The ADP report matters because it arrives two days before the official U.S. Nonfarm Payrolls release from the Bureau of Labor Statistics.

While the two reports measure employment differently, traders often use ADP as an early directional signal for the broader labor market.

Stronger labor data can influence expectations for:

• Federal Reserve policy
• Inflation pressures
• Consumer spending strength
• Overall economic growth

However, ADP should be viewed as one piece of the labor market puzzle, not a definitive predictor of the official payrolls number.

The Bottom Line

The February ADP report shows that private sector hiring continues but at a slower pace, with 63,000 jobs added during the month.

The broader takeaway is that the U.S. labor market remains healthy but uneven, and investors will now look to the upcoming Nonfarm Payrolls report for confirmation of the trend.

Data Source

ADP National Employment Report
https://www.adpemploymentreport.com