#ADPDataDisappoints
ADP Data Disappoints: Job Growth Slows Dramatically to Start 2026
The U.S private sector labor market delivered a surprisingly weak performance in January 2026, with payroll growth falling well below expectations and signaling a continued slowdown in hiring.
According to the latest ADP National Employment Report, private companies added just 22,000 jobs last month. This figure missed economists' forecast of 45,000 by a significant margin and was lower than December's downwardly revised gain of 37,000.
Key Details of the Report:
Sector Breakdown: The job gains were narrowly concentrated. The education and health services sector was the sole major driver, adding 74,000 positions. This was offset by notable losses in professional and business services (-57,000) and manufacturing (-8,000).
Historical Slowdown: ADP's data confirms a multi-year cooling trend. Chief economist Nela Richardson noted that job creation in 2025 was already weaker than initially reported, with private employers adding 398,000 jobs for the year, down sharply from 771,000 in 2024.
Wage Growth: In contrast to the weak hiring, wage growth for workers who stayed in their jobs held steady at 4.5% year over year.
The report reinforces a "lackluster job market" environment and will be a key data point for Federal Reserve policymakers assessing the economy's strength.
ADP Data Disappoints: Job Growth Slows Dramatically to Start 2026
The U.S private sector labor market delivered a surprisingly weak performance in January 2026, with payroll growth falling well below expectations and signaling a continued slowdown in hiring.
According to the latest ADP National Employment Report, private companies added just 22,000 jobs last month. This figure missed economists' forecast of 45,000 by a significant margin and was lower than December's downwardly revised gain of 37,000.
Key Details of the Report:
Sector Breakdown: The job gains were narrowly concentrated. The education and health services sector was the sole major driver, adding 74,000 positions. This was offset by notable losses in professional and business services (-57,000) and manufacturing (-8,000).
Historical Slowdown: ADP's data confirms a multi-year cooling trend. Chief economist Nela Richardson noted that job creation in 2025 was already weaker than initially reported, with private employers adding 398,000 jobs for the year, down sharply from 771,000 in 2024.
Wage Growth: In contrast to the weak hiring, wage growth for workers who stayed in their jobs held steady at 4.5% year over year.
The report reinforces a "lackluster job market" environment and will be a key data point for Federal Reserve policymakers assessing the economy's strength.