Private companies added 63,000 jobs in February, January revised to just 11,000 additions: ADP

• February private payrolls increased by 63,000, beating the 48,000 estimate.
• Job gains were concentrated in Education/Health Services (+58K) and Construction (+19K), with small businesses (<50 employees) adding +60K jobs.
• Professional/Business Services (-30K) and Manufacturing (-5K) experienced job losses.
• Median annual pay growth for job-stayers was 4.5% and for job-changers was 6.3%, with the pay premium for switching jobs being the lowest on record.
• The labor market is characterized as 'inert' with low turnover, and AI's impact on job displacement is not yet evident in the data, even in AI-exposed sectors like information services.

The February ADP private payroll report showed a gain of 63,000 jobs, exceeding the street's estimate of 48,000, marking the best month for job gains since July last year. Gains were primarily in education/health services and construction, with small businesses leading job creation. However, professional/business services and manufacturing saw declines, and the labor market is described as 'inert' with low pay premiums for job changers.