U.S. private payrolls increased more than expected in February, though data for the prior month was revised sharply lower, the ADP's national employment report showed on Wednesday.
Private employment rose by 63,000 jobs last month after a downwardly revised 11,000 increase in January. Economists polled by Reuters had forecast private employment rising by 50,000 jobs after a previously reported 22,000 gain in January.
The ADP report is jointly developed with the Stanford Digital Economy Lab, and was published ahead of the Bureau of Labor Statistics' more comprehensive and closely watched employment report for February on Friday. ADP has been a poor predictor of the BLS' private payrolls estimate.
Nonfarm payrolls likely increased by 59,000 jobs in February after accelerating 130,000 in January, a Reuters survey of economists predicted. Private payrolls are forecast to have risen by 65,000 jobs after advancing 172,000 in January. The unemployment rate is expected to have held steady at 4.3%.
The labor market has stabilized after wobbling last year amid uncertainty blamed by economists on import tariffs.
The U.S. Supreme Court last month struck down President Donald Trump's sweeping tariffs, which he pursued under a law meant for use in national emergencies. Trump quickly imposed a 10% global tariff for 150 days to replace some of the emergency duties, and later said they would be raised to 15%.
Labor market stability and still-high inflation are seen encouraging the Federal Reserve to keep interest rates unchanged this month. The U.S.-Israeli air war against Iran, and retaliation by Tehran, has raised oil and natural gas prices.
That prompted traders to dial back their rate cut expectations for this year amid concerns that the conflict could fan inflation. The odds of a June rate cut have greatly diminished. The U.S. central bank in January left its benchmark overnight interest rate in the 3.50%-3.75% range.