US Private Sector Employment Slows Sharply in January with Only 22,000 Jobs Added

Washington | EcoPulse24

ADP data showed that the US private sector added only 22,000 jobs in January 2026, a performance well below expectations of 48,000 jobs and lower than the downwardly revised 37,000 jobs in December. This underlines the ongoing loss of momentum in the US labor market at the start of the year.

January saw clear sectoral differences: healthcare led job creation with 74,000 new positions, financial activities added about 14,000 jobs, and construction employment grew by 9,000. Trade, transportation, utilities, and leisure and hospitality each contributed approximately 4,000 jobs.

Conversely, other sectors faced significant pressure. Professional and business services lost about 57,000 jobs, while manufacturing employment fell by 8,000, continuing its monthly decline since March 2024.

By company size, firms with 50-249 employees added 37,000 jobs, small business employment remained flat, and large companies cut 18,000 positions.

ADP Chief Economist Nela Richardson noted that the pace of job creation slowed sharply in 2025, with the private sector adding only 398,000 jobs compared to 771,000 in 2024. She emphasized that the labor market has experienced a sustained and pronounced hiring slowdown over the past three years, even as wage growth remains steady.

EcoPulse24 Analysis
ADP’s January data paints a picture of a labor market gradually losing steam without yet entering a sharp contraction. Despite weak overall hiring, continued strength in healthcare and stable wage growth suggest the US economy retains some resilience. However, ongoing job losses in manufacturing and professional services heighten concerns that tight monetary policy could place deeper pressure on employment in the first half of 2026, presenting the Federal Reserve with a delicate balance between supporting growth and curbing inflation.