ADP(US:ADP) Feng Huang Wang·2026-02-04 23:32Core Viewpoint - The latest ADP report indicates a slowdown in the U.S. labor market at the beginning of 2026, with private sector job growth significantly below expectations [1][4]. Employment Data Summary - In January, the private sector added only 22,000 jobs, falling short of the anticipated 48,000 and down from 37,000 in December [1][4]. - The goods-producing sector saw a net increase of only 1,000 jobs, with construction adding 9,000 jobs, while manufacturing lost 8,000 jobs [3]. - The service sector experienced mixed results, with trade/transport/utilities adding 4,000 jobs, financial services increasing by 14,000, education and health services up by 74,000, and leisure and hospitality adding 4,000 jobs [3]. - Conversely, the information sector lost 5,000 jobs, professional/business services decreased by 57,000, and other services fell by 13,000 [3]. - Employment changes by company size showed small businesses (1-49 employees) remained stable, medium-sized businesses (50-499 employees) added 41,000 jobs, while large businesses (500+ employees) lost 18,000 jobs [3]. Economic Insights - ADP's Chief Economist Nela Richardson expressed concern over the low growth in hiring, particularly in manufacturing and professional/business services, which have been experiencing job losses since March 2024 [3]. - Despite some signs of stabilization in recent months, the weaker-than-expected job growth in January suggests continued cooling in the labor market [4]. - Wells Fargo's Senior Economist Sarah House noted that the data reflects a stagnant labor market, with no significant improvement or deterioration in hiring trends [4].