ADP National Employment Report: Private Sector Employment Increased by 22,000 Jobs in January; Annual Pay was Up 4.5%

Core Insights - Private sector employment increased by 22,000 jobs in January 2026, with a year-over-year pay increase of 4.5% [1][10] - Job creation has slowed significantly, with 398,000 jobs added in 2025 compared to 771,000 in 2024, indicating a continuous decline over the past three years [3] Employment Changes - The education and health services sector was a standout, adding 74,000 jobs, while manufacturing has lost jobs every month since March 2024 [4] - The breakdown of job changes by industry shows: - Goods-producing: 1,000 jobs added - Service-providing: 21,000 jobs added [5] - Regional job changes included: - Northeast: 17,000 jobs added - Midwest: 25,000 jobs added - South: -10,000 jobs lost - West: -11,000 jobs lost [6][8][9] Pay Insights - Pay for job-stayers rose by 4.5% year-over-year, while pay growth for job-changers slowed to 6.4% from 6.6% [10] - Median annual pay changes for job-stayers varied by industry, with notable figures including: - Financial activities: 5.2% - Education/health services: 4.4% [14][22] Establishment Size Impact - Job changes by establishment size indicated: - Small establishments: 0 jobs added - Medium establishments: 41,000 jobs added - Large establishments (500+ employees): -18,000 jobs lost [9]