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Private sector adds 22,000 jobs in January: ADP
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Companies in the private sector added just 22,000 jobs in January, payroll processing firm ADP said Wednesday.
The figure is well below economists’ estimates of a gain of 48,000 jobs. The prior month’s payrolls number was revised lower to a gain of 37,000 from an initially reported gain of 41,000.
“Job creation took a step back in 2025, with private employers adding 398,000 jobs, down from 771,000 in 2024,” said ADP chief economist Nela Richardson. “While we’ve seen a continuous and dramatic slowdown in job creation for the past three years, wage growth has remained stable.”
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The figure is well below economists’ estimates of a gain of 48,000 jobs. (Angus Mordant/Bloomberg)
Education and health services added 74,000 positions, leading job creation in December. Financial activities added 14,000 positions, while construction added 9,000.
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Education and health services added 74,000 positions in January. (iStock)
Leisure and hospitality and trade, transportation and utilities each added 4,000 jobs. Hiring in natural resources and mining was flat for the month.
On the negative side, professional and business services lost 57,000 jobs. Other services and manufacturing lost 13,000 and 8,000, respectively. Hiring fell by 5,000 positions in information.
Professional and business services lost 57,000 jobs in January. (iStock)
Large businesses – those with 500 or more employees – lost 18,000 jobs in January. Businesses with 50 to 499 employees added 41,000 workers. Establishments with fewer than 20 employees added 30,000 positions, while those that have 20 to 49 workers lost 30,000 jobs.
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Wage growth in December was little changed from last month. People staying in their roles saw their pay climb 4.5% from the prior year, while pay gains for those changing their jobs fell slightly to 6.4% from 6.6% in December.
The ADP data is typically released before the Labor Department’s nonfarm payrolls report and can differ notably. However, due to the partial shutdown of the federal government that has since ended, the Labor Department said its report would be delayed. The government data was expected to show an increase of 64,000 positions, below the 50,000 reported in December. The unemployment rate was expected to remain at 4.4%.