ADP Jobs Report Shows Modest December Hiring
ADP jobs report on Jan. 7, 2026 showed private payrolls rose 41,000 below forecasts, signaling softer hiring momentum that may press rate-sensitive assets.
KEY TAKEAWAYS
- Private payrolls rose 41,000 in December, below economist expectations of 47,000-48,000.
- The reading reversed November's revised -29,000 loss, signaling softer hiring momentum entering 2026.
- Year-over-year pay growth held at 4.4% for job-stayers; job-changers rose to 6.6%.
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ADP's jobs report on Jan. 7, 2026 showed U.S. private-sector payrolls rose modestly in December, falling short of economists' forecasts and highlighting uneven hiring across industries and regions as the labor market entered 2026.
December Payrolls and Pay Trends
ADP released its December 2025 National Employment Report on Jan. 7, 2026, at 8:15 a.m. ET. The report showed private-sector employment increased by 41,000 jobs, below economist expectations of 47,000 to 48,000 and reversing November's revised loss of 29,000 jobs. This shortfall and the flip from contraction indicate softer hiring momentum at the start of the year.
Year-over-year pay growth for job-stayers held steady at 4.4% in December, while pay for job-changers rose to 6.6% from 6.3%. The steady gains for those who stayed and larger increases for those who switched jobs reflect ongoing wage pressure linked to worker mobility despite slower hiring.
The next ADP National Employment Report is scheduled for Feb. 4, 2026, at 8:15 a.m. ET.
Industry, Regional, and Firm-Size Patterns
Private-sector job gains were concentrated in services, which added 44,000 jobs, while goods-producing employment declined by 3,000. Within services, education and health services added 39,000 jobs and leisure and hospitality added 24,000. Professional and business services lost 29,000 jobs, illustrating a divide between consumer-facing sectors and white-collar industries.
Regionally, the Northeast added 40,000 jobs, the Midwest 9,000, and the South 54,000, while the West declined by 61,000. This geographic mix offset some national gains and underscored uneven labor market momentum across the country.
By establishment size, small firms (1–49 employees) added 9,000 jobs, medium firms (50–499 employees) added 34,000, and large employers (500+) added 2,000. ADP chief economist Dr. Nela Richardson said, "Small establishments recovered from November job losses with positive end-of-year hiring, even as large employers pulled back." This pattern of stronger hiring at smaller and mid-sized firms alongside a pullback among large employers framed ADP's year-end hiring analysis.
ADP's data come from anonymized payroll records covering more than 26 million U.S. private-sector employees, with Pay Insights based on over 15 million observations.
