Private payrolls rose by just 22,000 in January, far short of expectations, ADP says

Core Insights - The U.S. labor market showed minimal growth in January, with hiring falling short of expectations, indicating a continuation of a weak job market from 2025 [3][4] Employment Data - Private companies added only 22,000 jobs in January, significantly lower than the revised 37,000 increase in December and below the Dow Jones forecast of 45,000 [2] - The education and health services sector was the only significant contributor, adding 74,000 jobs, while other sectors experienced losses [2][4] Sector Performance - Financial activities added 14,000 jobs, construction increased by 9,000, and trade, transportation, utilities, and leisure and hospitality each contributed 4,000 jobs [4] - Notable job losses occurred in professional and business services (-57,000), other services (-13,000), and manufacturing (-8,000) [4] Company Size Impact - Job growth was primarily driven by companies with 50 to 499 employees, while small firms remained flat and large employers reduced their workforce by 18,000 [5] Wage Growth - Wage growth remained stable, with employees staying in their positions experiencing a 4.5% increase compared to December [5] Reporting Context - The ADP report serves as a precursor to the Bureau of Labor Statistics nonfarm payrolls report, which is delayed due to a partial government shutdown [6]