Companies added 475,000 jobs in February, better than expected, ADP says

Private job creation rose at a faster-than- expected clip in February, according to a count released Wednesday from payrolls processing firm ADP.

The companies added 475,000 jobs in the month.

The January count was revised from a loss of 301,000 to a gain of 509,000. The Labor Department count for the month of 467,000 gain was revised upward by 810,000.

The report noted that the Census and Bureau of Labor Statistics data were in line with the annual revisions of the count conducted by ADP. There were adjustments over the past year, but none like January 2022.

Nela Richardson said that hiring remains robust but capped by reduced labor supply.

552,000 jobs were added in the month by companies with 500 or more workers. Mid-sized businesses added just 18,000 while firms with fewer than 50 employees lost 96,000.

The leisure and hospitality sector had the biggest gains with an increase of 170,000. Professional and business services increased by 72,000.

On the goods side, manufacturing and construction both increased.

The BLS nonfarm payrolls report comes out Friday and the ADP count serves as a preview. The economy is expected to add 440,000 jobs for the month.