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U.S. private employers added just 22,000 jobs in January, far below economists’ expectations, signaling a continued cooling of the labor market at the start of 2026, Bloomberg writes.
New data from ADP Research shows hiring slowed sharply after a downward revision to December figures, offering the clearest snapshot yet of January employment as the federal government shutdown delayed official labor reports.
While some economists see signs of stabilization, overall hiring remains stagnant. Education and health services drove most job gains, continuing a post-pandemic trend, while professional and business services saw the largest job losses since June.
Payrolls declined at large companies and were flat at smaller firms, even as layoffs remain relatively limited.
Wage growth also showed signs of moderation. Workers who changed jobs saw pay increase 6.4%, down from the prior month, while those who stayed in place experienced a modest pickup.
The upcoming rescheduled government jobs report is expected to show slower job growth revisions through early 2025, reinforcing concerns about a softening labor market.
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