Private sector added 22,000 jobs in January, well below expectations, ADP says

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.”

Education and health services added 74,000 positions, leading job creation in December. Financial activities added 14,000 positions, while construction added 9,000.

Leisure and hospitality, 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.

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.

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