U.S. private employers added 198,000 jobs in February, the biggest increase in a year and another sign of improvement in the labor market, a report by a payrolls processor showed on Wednesday.

Economists surveyed by Reuters had forecast the ADP National Employment Report would show a gain of 170,000 jobs. January's private payrolls were revised up to an increase of 215,000 from the previously reported 192,000.

The report is jointly developed with Moody's Analytics.