On January 9, 2026, a “Help Needed” sign is posted in the window of a Manhattan business in New York City.
Spencer Pratt | Getty Images
The U.S. labor market moved little in January, with payrolls falling below expectations, according to a Wednesday report from payroll processing firm ADP.
Private companies added just 22,000 jobs that month, a figure that would have been negative were it not for a 74,000-job surge in the education and health services sectors. The total was lower than the $37,000 increase that had been revised downward in December, and also below the Dow Jones consensus estimate of a $45,000 increase.
The report starts 2026 in essentially the same situation as 2025 ended. That would do little to allay concerns among Fed policymakers that an environment of fewer jobs and fewer layoffs would lead to a lackluster job market and the need for more support.
Outside of healthcare, which was the main driver of employment growth last year, the finance industry added 14,000 jobs, the construction industry added 9,000 jobs, and the trade, transportation, utilities and leisure and hospitality industries added 4,000 jobs.
However, some sectors reported losses.
Professional and business services decreased by 57,000 jobs, other services decreased by 13,000 jobs, and manufacturing decreased by 8,000 jobs. All but 1,000 net jobs were in the services sector.
In terms of size, businesses employing between 50 and 499 workers added all the jobs, small businesses were flat and large businesses lost 18,000 jobs. Due to rounding, the totals do not add up exactly.
Wage growth was little changed from December, with a 4.5% increase for those who kept their jobs.
ADP reports are typically released ahead of the more closely watched Bureau of Labor Statistics’ nonfarm payrolls report, which is usually released on Fridays. However, the partial government shutdown has once again delayed the lifting of BLS, putting resolution of the impasse on hold.
