economy
Private payrolls rose by just 22,000 in January, far short of expectations, ADP says
The U.S. labor market barely budged in January, with hiring below even muted expectations.
TL;DR
- Private companies added only 22,000 jobs in January, below expectations.
- The education and health services category was the primary driver of job growth.
- Hiring has been softening for the past three years, with employers showing reluctance to hire.
- 2025 job gains were weaker than initially reported, revised down by 18,000 per month.
- Professional and business services, other services, and manufacturing sectors reported job losses.
- Companies with 50-499 employees added all the jobs, while small firms were flat and large employers lost jobs.
- Wage growth for those staying in their jobs was 4.5%.