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Private sector companies it only added 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 previous month’s payrolls number was revised down to a gain of 37,000 from an initial 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 over the past three years, wage growth has remained steady.”
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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 jobs, 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 jobs in January. (iStock)
Leisure and hospitality and trade, transportation and utilities each added 4,000 jobs. Hiring in natural resources and mining was flat during 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 was reduced by 5,000 positions in information.
Professional and business services lost 57,000 jobs in January. (iStock)
Large companies, those with 500 or more employees, lost 18,000 jobs in January. Companies with between 50 and 499 employees added 41,000 workers. Establishments with fewer than 20 workers added 30,000 jobs, while those with 20 to 49 workers lost 30,000 jobs.
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Salary growth in December it changed little compared to last month. Those staying in their jobs saw their pay rise 4.5% from a year earlier, while wage gains for those who changed jobs fell slightly to 6.4% from 6.6% in December.
ADP data is usually released before Department of Labor non-farm payrolls report and may differ markedly. However, due to the partial federal government shutdown that has since ended, the Labor Department said its report would be delayed. Government data was expected to show an increase of 64,000 jobs, down from the 50,000 reported in December. The unemployment rate was expected to remain at 4.4%.
