ADP estimates that US private sector employment rose by +22,000 in January (following a downward revision in December), indicating subdued hiring momentum at the start of 2026.

• The softer January and downward revision in December (from 41,000 to 37,000) put the 3-month average at roughly +44,000, showing hiring remained modest despite earlier strength.

• Education and health services led job gains with +74,000 positions, standing out as the primary source of employment growth during a weak hiring month.

• Professional and business services shed -57,000 jobs, representing the largest sectoral drag on overall employment.

• Manufacturing employment declined -8,000, extending a run of monthly job losses that has persisted since March 2024.

• Service-providing industries added a net +21,000 jobs, while goods-producing sectors posted only a small +1,000 increase, reflecting uneven sector performance.

• Regionally, employment rose in the Midwest (+25,000) and Northeast (+17,000), but fell in the South (-10,000) and West (-11,000), with large declines in the South Atlantic and Pacific subregions.

• Mid-sized firms accounted for most hiring with +41,000 jobs, while large firms cut -18,000 positions and small firms were flat overall.

• Job-stayer pay growth edged up to +4.5% YoY (Dec: +4.4%), while pay growth for job changers eased to +6.4% YoY (Dec: +6.6%), indicating largely stable wage trends despite slower job creation.