ADP National Employment Report: Private Sector Employment Increased by 77,000 Jobs in February; Annual Pay was Up 4.7%
NEWS PROVIDED BY PR Newswire
Mar 05, 2025, 08:15 ET
ROSELAND, N.J., March 5, 2025 /PRNewswire/ -- Private sector employment increased by 77,000 jobs in February and annual pay was up 4.7 percent year-over-year, according to the February ADP® National Employment Report™ produced by ADP Research in collaboration with the 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 U.S. employees.
The jobs report and pay insights use ADP's fine-grained anonymized and aggregated payroll data to provide a representative picture of the private-sector labor market. 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 a high-frequency, near real-time measure of U.S. employment. This measure reflects the number of employees on ADP client payrolls (Payroll Employment) to provide a richer understanding of the labor market. As of January 2025, ADP's Pay Insights measure captures nearly 14.8 million individual pay change observations each month, up from nearly 10 million when it launched.
"Policy uncertainty and a slowdown in consumer spending might have led to layoffs or a slowdown in hiring last month," said Nela Richardson, chief economist, ADP. "Our data, combined with other recent indicators, suggests a hiring hesitancy among employers as they assess the economic climate ahead."
February 2025 Report Highlights*
View the ADP National Employment Report and interactive charts at www.adpemploymentreport.com.
JOBS REPORT
Private employers added 77,000 jobs in FebruaryHiring slowed to the smallest level of gains since July, with trade and transportation, health care and education, and information showing job losses. Small business employment also fell.
Change in U.S. Private Employment: 77,000
Change by Industry Sector
- Goods-producing: 42,000
Natural resources/mining -2,000
Construction 26,000
Manufacturing 18,000
- Service-providing: 36,000
Trade/transportation/utilities -33,000
Information -14,000
Financial activities 26,000
Professional/business services 27,000
Education/health services -28,000
Leisure/hospitality 41,000
Other services 17,000
Change by U.S. Regions
- Northeast: 55,000
New England 34,000
Middle Atlantic 21,000
- Midwest: 56,000
East North Central 45,000
West North Central 11,000
- South: -12,000
South Atlantic -26,000
East South Central 32,000
West South Central -18,000
- West: -27,000
Mountain -2,000
Pacific -25,000
Change by Establishment Size
- Small establishments: -12,000
1-19 employees -17,000
20-49 employees 5,000
- Medium establishments: 46,000
50-249 employees 15,000
250-499 employees 31,000
- Large establishments: 37,000
500+ employees 37,000
PAY INSIGHTS
Pay gains remained stable in FebruaryFor job-changers, year-over-year pay gains slowed slightly, from 6.8 percent in January to 6.7 percent. Pay gains for job-stayers were flat at 4.7 percent.
Median Change in Annual Pay (ADP matched person sample)
- Job-Stayers 4.7%
- Job-Changers 6.7%
Median Change in Annual Pay for Job-Stayers by Industry Sector
- Goods-producing:
Natural resources/mining 4.4%
Construction 4.9%
Manufacturing 4.8%
- Service-providing:
Trade/transportation/utilities 4.4%
Information 4.2%
Financial activities 5.1%
Professional/business services 4.5%
Education/health services 4.9%
Leisure/hospitality 4.8%
Other services 4.5%
Median Change in Annual Pay for Job-Stayers by Firm Size
- Small firms:
1-19 employees 2.8%
20-49 employees 4.4%
- Medium firms:
50-249 employees 4.9%
250-499 employees 5.1%
- Large firms:
500+ employees 5.0%
To see Pay Insights by U.S. State, Gender, and Age for Job-Stayers, visit here.
* Sum of components may not equal total due to rounding.
The January total number of jobs added was revised from 183,000 to 186,000. The historical data file and weekly data for the previous month are available at https://adpemploymentreport.com/.
To subscribe to monthly email alerts or obtain additional information about the ADP National Employment Report, including employment and pay data, interactive charts, methodology, and a calendar of release dates, please visit https://adpemploymentreport.com/.
The March 2025 ADP National Employment Report will be released at 8:15 a.m. ET on April 2, 2025.
About the ADP® National Employment Report™
The ADP National Employment Report is an independent measure of the change in U.S. private employment and pay derived from actual, anonymized payroll data of client companies served by ADP, a leading provider of human capital management solutions. The report is produced by ADP Research in collaboration with the Stanford Digital Economy Lab.
The ADP National Employment Report is broadly distributed to the public each month, free of charge, as part of the company's commitment to offering deeper insights of the U.S. labor market and providing businesses and governments with a source of credible and valuable information.
About ADP Research
The mission of ADP Research is to make the future of work more productive through data-driven discovery. Companies, workers, and policymakers rely on our finely tuned data and unique perspective to make informed decisions that impact workplaces around the world.
About ADP (NASDAQ – ADP)
Designing better ways to work through cutting-edge products, premium services and exceptional experiences that enable people to reach their full potential. HR, Talent, Time Management, Benefits and Payroll. Informed by data and designed for people. Learn more at ADP.com
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