Report on ADP jobs February 2025:

The creation of jobs in the private sector has slowed down to a ramp in February, fueling the concerns of an economic slowdown, the ADP payroll processing company reported on Wednesday.

Companies have added only 77,000 new workers for the month, the revised increase of 186,000 in January and below the estimate of the consensus of 148,000 Dow Jones, according to the seasonal adjusted figures of ADP.

The total has been the smallest increase since July and arrives at a time when concerns increase that economic growth is slowing down and concerns are brewing that President Donald Trump’s pricing plans will arouse another series of inflation. The ADP said the annual salary had increased by 4.7% in February, the same as the previous month.

The term contracts on the stock market have lost some of their earnings following the press release while the yields of the treasury were mixed.

“Political uncertainty and a slowdown in consumption expenses could have led to layoffs or a slowdown in hiring last month,” said ADP chief economist Nela Richardson. “Our data, combined with other recent indicators, suggest hesitation among employers when they assess the upcoming economic climate.”

Although most economic data points remain positive, feeling indicators have shown growing fears among business leaders and consumers that Trump prices could increase prices and slowdown in growth. In the extreme scenario, the combination could cause stagflation, a condition of flat or negative growth and price increase.

The ADP report has reflected some of these concerns, as a sector which brings together trade, transport and public services experienced a loss of 33,000 positions. Education and health services have reported a drop of 28,000, while information services decreased by 14,000 to a moment of uncertainty for companies related to artificial intelligence, despite Trump’s commitment to advancing AI’s efforts.

On the positive side, leisure and hospitality jobs jumped by 41,000, while professional and commercial services added 27,000 and financial activities and construction both saw gains of 25,000. Manufacturing also reported an increase of 18,000, thwarting the survey on the manufacture of ISM for the month which indicated that companies were withdrawing.

The services and products producing goods were in unusual balance for the month, adding 36,000 and 42,000 respectively the month. As the United States is an economy based on services, this side generally dominates job creation.

Employment growth lost to large companies in February, companies employing 500 or more workers reporting a gain of 37,000 while those of less than 50 employees saw a loss of 12,000.

The ADP count serves as a precursor to the report of the work statistics of the Labor Department on the non -agitated wage bill, due on Friday. However, the two reports may differ considerably due to different methodologies. In January, the BLS declared an increase of only 111,000 in private payroll, well below the number of ADP.

Economists interviewed by Dow Jones expect Friday’s report to show employment of 170,000 and a stable unemployment rate at 4%.