Labor Market Finds New Groove But Only in Health Class and Construction
KEY POINTS
- •ADP's payroll data revealed February added 63,000 private sector jobs, with education and health services providing 58,000 of those roles.
- •Bank of America’s David Tinsley said this growth shows ‘real forward momentum,’ but wage gains favored high earners, leaving others with minimal raises.
- •ADP’s Nela Richardson warned small firms drove most job gains, yet pay growth underperformed inflation, and geopolitical uncertainties clouded hiring outlook for 2026.
In a thrilling February plot twist, private payroll processor ADP announced a heroic 63,000 new jobs overcame January's measly 11,000, mostly thanks to education and health services stuffing 58,000 roles—because apparently teaching and bandaging are the economy’s rock stars. Construction chipped in with a modest 19,000 jobs, perhaps hammering in economic optimism. Bank of America's senior economist David Tinsley hailed this as 'real forward momentum,' while ADP's Nela Richardson whispered cautious praise, warning other sectors looked like my plant after a week without water. Sadly, only big wigs earned solid raises—4.2% YoY—while middle and lower earners got crumbs at 1.2% and 0.6%. Meanwhile, tiny firms with fewer than 20 employees were behind 58,000 jobs but couldn't afford pay raises above inflation. Shockingly, the 'change jobs for more money' tactic now yields less cash, hitting a record low. And just when we thought uncertainty was done, the Iran war apparently threatens hiring mood swings into 2026, so firms are nursing their hiring hangovers like bad Friday nights.
Share the Story
Only education and health kept the job market alive in February, while most sectors looked like that friend who ‘definitely’ showed up but didn’t bring snacks or energy.
63,000 new jobs sounds great until you realize most are just teachers and nurses quietly holding the economy's IV drip.
Labour market's version of a party: a booming two sectors dancing, everyone else standing awkwardly by the snacks.
Source: Axios | Published: 3/4/2026 | Author: Courtenay Brown
More Articles in Business
American Journalist Survives Burmese Prison With Meditation and Podcasts, Cousin Draws It
Amazon Robots Face Layoffs After Few Months on the Job, Apparently Too Efficient
Crypto Bros Tried Betting on Nuclear Holocaust, Market Got Nuked Instead
America’s Biggest Fast Food Chains Running Away From Their Own Restaurants
Tech Billionaires Race To See Who Can Hide From World Chaos Best
U.S. Turns Natural Gas Into Economic Moat, Qatari Tantrums Included
