Private payrolls rose by just 22,000 in January, far short of expectations, ADP says
January 2026 saw weak private-sector hiring with a 22,000 job increase led by education and health services despite losses in professional/business services and manufacturing, ADP said.
- On Feb. 4, 2026, ADP reported U.S. private payrolls rose by just 22,000 in January as part of its National Employment Report.
- Education and health services led hiring with 74,000 jobs, underpinning the modest 22,000 increase in January, a step down from December's 37,000 and below forecasts.
- From a size standpoint, mid-sized firms added all the jobs while professional and business services fell 57,000 and manufacturing lost 8,000; pay for job-stayers rose 4.5%.
- Investors and policymakers will watch the Bureau of Labor Statistics non‑farm payroll report to confirm ADP's weak reading, which is seen as negative for the USD and may influence Federal Reserve policymakers.
- The ADP report, based on more than 26 million private‑sector employees, shows slowed hiring in 2025 with private employers adding 398,000 jobs, down from 771,000 in 2024, Dr. Nela Richardson said.
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The sectors that added more jobs were education and health with 74,000 more jobs
The private sector in the United States created considerably fewer jobs in January than expected by analysts, particularly in the manufacturing sector, according to the ADP/Stanford Lab survey released on Wednesday, February 4. Last month, private companies created 22,000 jobs, well below the 45,000 that analysts expected.January was a “medium month” for hiring, ADP said.The education and health services sectors had a growth in the number of job…
Private-sector’s weak hiring misses forecasts in January, ADP says
“What we saw today was a very stagnant picture of the labor market," says Sarah House, a senior economist at Wells Fargo & Co.
Companies add 22K jobs in January, missing expectations
U.S. private sector employment went up by 22,000 jobs last month, according to a report from the payroll management company ADP. ADP said in its National Employment Report that January was “a lackluster month for hiring,” but also noted that the health care sector “was a standout.” “Job creation took a step back in 2025,…
US Private Payrolls Growth Slows to Start 2026: ADP
U.S. private payroll growth cooled at the start of 2026, rising at a slower‑than‑expected pace, according to ADP data released on Feb. 4. The private sector added 22,000 jobs in January, down from a downwardly revised 37,000 in December, the payroll processor said in its National Employment Report. This came in well below the consensus estimate of 48,000. Education and health care services accounted for much of the employment gains, with 74,000 …
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