WASHINGTON (MarketWatch) — U.S. private-employment growth is picking up, according to data released Wednesday that showed payrolls rose in February for the 25th month.

Private-sector payrolls increased 216,000 on the month, led by the service-providing sector and small businesses, according to the February labor-market report from payrolls-processor Automatic Data Processing Inc. Over the last three months, gains have averaged 223,000, compared with a monthly average of 156,000 for 2011.

“This pick-up is consistent with the recent acceleration of the nation’s gross domestic product which, in the fourth quarter, grew at the fastest pace since second quarter of 2010,” said Joel Prakken, chairman of Macroeconomic Advisers, which produces the report for ADP.

He added that the fresh data indicate that the U.S. unemployment rate may have “declined slightly” in February. Joblessness stood at 8.3% for January.

“Conditions continue to improve at a moderate pace and are consistent with other indicators suggesting some firming of the labor market,” Prakken said.

Wednesday’s report echoes other improving labor-market data. Read about hiring on the upswing.

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ADP revised the January gain to 173,000 from a prior estimate of 170,000. Economists had expected a gain of 215,000 for February.

By firm size, nonfarm private employment in February rose 108,000 at small businesses, 88,000 at medium businesses, and 20,000 at large businesses, according to ADP. By sector, service-provider employment rose 170,000, while goods producers added 46,000 jobs.

“The latest ADP payroll survey adds to the evidence that U.S. labor market conditions are still improving,” said Paul Ashworth, chief U.S. economist of Capital Economics, a London-based research firm. “The pick-up in employment growth was widespread across all sizes of firms and all sectors.”

Markets look to ADP’s report on private-sector payrolls to provide some guidance on what to expect from the U.S. Labor Department’s jobs estimate, which will be released Friday and incorporates information on both private- and public-sector payrolls.

Economists polled by MarketWatch expect the Labor Department to report that nonfarm payrolls expanded by 213,000 in February, compared with 243,000 in January. They also expect that the unemployment rate remained at 8.3%. See economic calendar.