Private sector added 22,000 jobs in January, well below expectations, ADP says

Published: Wednesday, February 4, 2026 at 1:20 pm

Private Sector Job Growth Stalls in January, ADP Report Shows

New data from payroll processing firm ADP reveals a significant slowdown in private sector job growth for January. The report, released Wednesday, indicates that companies added a mere 22,000 jobs, a figure that falls considerably short of economists' expectations of 48,000 new positions. This marks a notable deceleration in hiring compared to previous months.

The previous month's figures were also revised downward, with the initial gain of 41,000 jobs adjusted to 37,000. This trend underscores a broader pattern of slowing job creation. ADP's chief economist, Nela Richardson, noted that private employers added 398,000 jobs in 2025, a substantial decrease from the 771,000 added in 2024. Despite this slowdown in job creation over the past three years, wage growth has remained relatively stable.

Specific sectors experienced varying levels of growth. Education and health services led the way, adding 74,000 positions. Financial activities and construction also saw gains, with 14,000 and 9,000 new jobs, respectively. Leisure and hospitality, trade, transportation, and utilities each added 4,000 jobs. However, the natural resources and mining sector saw no change in hiring.

Conversely, some sectors experienced job losses. Professional and business services saw the most significant decline, shedding 57,000 jobs. Other services and manufacturing also contracted, losing 13,000 and 8,000 jobs, respectively. The information sector saw a decrease of 5,000 positions.

Wage growth data for December showed little change from the previous month. Employees who remained in their current positions saw their pay increase by 4.5% year-over-year. For those changing jobs, pay gains slightly decreased to 6.4%, down from 6.6% in December.

BNN's Perspective:

The January ADP report paints a picture of a cooling labor market. While the slowdown is concerning, the stability in wage growth offers a potential counterbalance. The data suggests a need for careful monitoring of economic indicators to assess the overall health of the economy and the potential impact on future employment trends.

Keywords: ADP, jobs, employment, private sector, job growth, wages, economy, labor market, hiring, education, health services, financial activities, construction, manufacturing, professional services

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