ADP jobs report January 2026:
The U.S. labor market saw minimal growth in January, with hiring falling short of expectations, according to a report released by ADP on Wednesday.
Private companies added only 22,000 positions in January, a number that would have been negative if not for a surge of 74,000 hires in the education and health services sector. This figure was lower than the revised 37,000 increase in December and below the consensus forecast of 45,000.
The report for January reflects a continuation of the trend seen in 2025, with a sluggish job market in a low-hire, low-fire environment. This is likely to raise concerns among Federal Reserve policymakers, who may consider the need for additional support.
Nela Richardson, ADP’s chief economist, highlighted that hiring has been softening over the past three years, with employers showing reluctance to hire in the current economic climate. Benchmark revisions to ADP’s data revealed that job gains in 2025 were weaker than initially reported.
In terms of employment growth last year, aside from the health care sector, which saw significant gains, financial activities added 14,000 positions, construction increased by 9,000, and both the trade, transportation, and utilities industry and the leisure and hospitality sector contributed 4,000 jobs. However, some sectors reported losses, with professional and business services declining by 57,000, the other services category losing 13,000, and manufacturing down by 8,000.
Companies with 50 to 499 employees were the primary contributors to job growth, while small firms remained flat and large employers saw a decrease of 18,000 jobs. Wage gains remained relatively unchanged from December, with a 4.5% increase for those staying in their current positions.
The ADP report precedes the Bureau of Labor Statistics nonfarm payrolls report, which has been delayed due to the recent government shutdown. The impact of these findings on the overall economy remains to be seen as policymakers assess the need for further intervention.
