ADP jobs report shows sluggish payrolls growth to start 2026

Core Insights - Private sector hiring has stagnated, with only 22,000 jobs added in January 2026, indicating a continuation of sluggish job growth from the end of 2025 [1][2] - The overall job growth would have been negative without the addition of 74,000 jobs in the education and health services sector, highlighting a significant reliance on these sectors for job creation [2] - Manufacturing has experienced job losses for nearly two years, contributing to the overall slowdown in job growth alongside declines in professional and business services [2][3] Employment Trends - Job creation in 2025 was significantly lower, with private employers adding 398,000 jobs compared to 771,000 in 2024, reflecting a dramatic slowdown over the past three years [3] - Wage growth has remained stable despite the slowdown in job creation, suggesting that while hiring has decreased, compensation levels have not followed suit [3] - The federal government's December jobs report indicated modest growth but raised concerns about the economy's stability, with signs of a prolonged "no-hire, no-fire" situation [4] Sector-Specific Developments - A notable decline of 25,000 jobs in retail employment was reported, indicating a deeper pullback in hiring, potentially due to companies cutting costs regardless of consumer spending [5] - Job losses in business services and IT sectors are particularly concerning as they are closely tied to corporate investment and white-collar employment [3][4]