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.

(Reporting By Steven C. Johnson; Editing by Chizu Nomiyama)