U.S. private sector added 140,000 jobs in February, slightly missing the expected 150,000.

Job growth was led by trade, transportation, utilities, and construction, with professional and business services seeing job losses.

The report indicates a potential slowdown in labor demand with pay gains still above inflation yet trending lower.

ADP's data is often seen as overstating the labor market slowdown and is unlikely to affect immediate monetary policy decisions.

Financial markets expect the Federal Reserve to cut interest rates later this year, depending on inflation reduction progress.

Federal Reserve Chair Jerome Powell indicates rate cuts will not occur until there's confidence in inflation approaching the 2% target.

The Labor Department's upcoming employment report for February is projected to show gains of 160,000 private payroll jobs and 200,000 total nonfarm jobs with a steady unemployment rate of 3.7% and a slight decrease in annual wage growth.