Private sector hiring started 2026 practically stuck in neutral, according to a new report, with companies adding only 22,000 jobs in January. The report Wednesday from the payroll processing firm ADP showed that the jobs market sluggishness that defined the end of 2025 continued into this year. Total jobs growth would have been negative if it weren't for 74,000 jobs added in the education and health services sector, according to the ADP report. Manufacturing has lost jobs every month for almost two years ...

Group 1 - The latest ADP employment report indicates a slight recovery in employment numbers, with November's figures revised from -32,000 to -29,000, although still below expectations [2] - The December employment growth was primarily driven by the service sector and small businesses with fewer than 500 employees, adding 39,000 jobs in education and healthcare, 24,000 in leisure and hospitality, and 11,000 in trade, transportation, and utilities [4] - The report highlights a decline in certain sectors, including a loss of 29,000 jobs in professional and business services, 12,000 in information services, and 5,000 in manufacturing [4] Group 2 - ADP's Chief Economist Nela Richardson noted that small businesses have recovered from the employment decline in November, while larger employers are reducing their workforce [4] - The report also shows an increase in annual salary growth for job switchers to 6.6%, up from a previous low of 6.3%, while salaries for employees remaining in their jobs remained stable at 4.4% [4] - Economists expect a recovery in the upcoming non-farm payroll data, predicting an addition of 73,000 jobs in December, up from 64,000, with a slight decrease in the unemployment rate to 4.5% [4]

Core Viewpoint - The article does not provide any specific insights or analysis regarding companies or industries, focusing instead on the authors' lack of positions in the mentioned stocks [1]. Group 1 - No positions held by Anand Chokkavelu in any of the stocks mentioned [1] - No positions held by Matt Frankel, CFP in any of the stocks mentioned [1] - No positions held by Tyler Crowe in any of the stocks mentioned [1] Group 2 - The Motley Fool has no positions in any of the stocks mentioned [1] - The Motley Fool has a disclosure policy [1]

Core Viewpoint - Markets are experiencing gains following weak private jobs data, which has led to increased expectations for a rate cut by the U.S. Federal Reserve in its upcoming meeting [2]. Group 1: Market Performance - After initial weakness, markets have shown resilience, achieving gains for two consecutive days [1]. - The rally on Wednesday was driven by disappointing job data, with ADP reporting a loss of 32,000 jobs in November, significantly below the expected gain of 40,000 [2]. Group 2: Economic Implications - The weak job data has reinforced investor belief that the Federal Reserve will lower interest rates in its final meeting of the year on December 9-10 [2]. - While the current market rally may provide short-term benefits, ongoing job losses could indicate deeper economic issues, raising concerns about the sustainability of this rally [3].

Core Insights - US private employers experienced a loss of 32,000 jobs in November, indicating a stagnation in job creation, particularly affecting small businesses [1][2] - The hiring environment has been inconsistent, influenced by cautious consumer behavior and an uncertain macroeconomic landscape, with small businesses leading the decline in job creation [2][3] - Pay growth is also decelerating, with year-over-year pay for job-stayers rising by 4.4% in November, down from 4.5% in October, and job-changers seeing a decrease from 6.7% to 6.3% [4] Employment Trends - Job creation has been flat in the latter half of the year, with small businesses particularly struggling in November [1][2] - Manufacturing, construction, and professional services saw job losses, while education and health services added jobs, with gains primarily in mid-sized and large businesses [3] Economic Sentiment - The Federal Reserve's Beige Book indicates subdued labor demand, hiring freezes, and potential job displacement due to AI [5] - A significant portion of American workers, 69%, anticipate an increase in unemployment over the next year, reflecting a negative sentiment towards the job market [6]

Core Insights - The U.S. private sector has experienced a significant increase in job losses, averaging over 13,500 jobs lost per week in October and early November, indicating a weakening labor market [1][2][3] Summary by Sections Job Losses - Private sector employers reported an average loss of 13,500 jobs per week for the four weeks ending November 8, which is a notable increase from the previous average loss of 2,500 jobs per week [2][3] - This represents a nearly 20% increase in job losses compared to the prior four-week period, where the average loss was 11,250 jobs per week [3] Labor Market Conditions - Early October showed more stable conditions, with a reported increase of 42,000 private sector payrolls and a year-over-year wage increase of 4.5%, but subsequent data indicated a decline towards the end of the month [4] - ADP's chief economist described the current labor market as a "C plus, B minus" situation, reflecting mixed conditions [5]

Core Insights - The U.S. private sector has experienced a significant job loss, averaging over 11,000 jobs per week through late October, indicating a historic decline in the job market [1][2] - Earlier data suggested a temporary increase in private-sector payrolls in October, but recent reports indicate a sharp decline towards the end of the month [3] Job Market Trends - Private-sector employers shed an average of 11,250 jobs per week in the four weeks ending October 25, highlighting struggles in job creation during the latter half of the month [2] - This decline marks the first recorded job loss by ADP since August, when nearly 20,000 jobs were lost in the four weeks ending August 30 [2] Economic Projections - Analysts at Goldman Sachs predict a decline of 50,000 nonfarm payrolls in October, which would represent the largest single-month drop since late 2020 [4] - Dow Jones economists expect an even steeper decline of 60,000 jobs and a rise in the unemployment rate to 4.5% [4] - Indeed reported that job openings have fallen to their lowest level since February 2021, indicating a tightening job market [4]

Labor Market Overview - The ongoing government shutdown has resulted in a lack of official labor market data, leading to reliance on alternative metrics to assess current conditions [1][2] - Various indicators suggest a weak but not collapsing labor market, with expectations of a decline of 60,000 jobs and an increase in the unemployment rate to 4.5% if the Bureau of Labor Statistics had released its report [2] Employment Trends - The labor market is characterized by low hiring and low firing, indicating high uncertainty among businesses [3] - The unemployment rate remains low at around 4.4%, with little change observed in layoffs and hiring rates [3] Small Business Employment - Larger firms continue to add workers, while smaller businesses are reducing their workforce, reflecting a trend of conservatism among small business owners [5][6] - ADP reported a loss of 34,000 jobs in October for businesses employing fewer than 250 people, indicating a steady erosion in employment for smaller firms [6] Job Creation and Layoffs - ADP reported that companies added only 42,000 jobs in October, which, while better than expected, still reflects weak hiring [7] - Challenger, Gray & Christmas reported 153,074 announced job cuts in October, the highest for that month in 22 years [7] - The Institute for Supply Management's employment indexes for services and manufacturing sectors indicate more companies are planning to hold or cut staffing levels, with readings below 50% signaling contraction [7] Wage Growth Disparities - Bank of America reported a year-over-year payroll growth of 0.5% in October, with significant disparities in wage growth: higher earners at 3.7%, middle earners at 2%, and lower income at only 1% [7] Job Openings and Small Business Indicators - Job search site Indeed reported a decline in job openings, reaching the lowest level since February 2021 [7] - Homebase indicated a further decline in small business employment, with a 2.9% drop in the "employees working" indicator from January levels [7]

Group 1 - The current government shutdown has lasted for 37 days, which is different from previous shutdowns that typically had minimal impact on the stock market [1] - The Dow has dropped 399 points, the S&P 500 has lost 1.12%, and NASDAQ has decreased by 1.90%, with these losses attributed to the ongoing shutdown and lack of economic data [2] - Job cuts have surpassed 1 million, marking the highest total for October since 2003, with companies citing cost-cutting and AI as reasons for these layoffs [3] Group 2 - The employment data from payroll processors ADP and Paychex, along with employment management software companies, indicate a negative trend in hiring, reflecting a challenging economic environment [4]

Core Viewpoint - The market may be utilizing certain stocks to convey a cautionary message regarding broader economic conditions [1] Group 1 - The current market behavior suggests a potential warning signal from specific stocks [1] - Investors are advised to pay attention to the underlying trends indicated by these stock movements [1]