Private Sector Added 22K Jobs in January as Labor Slowdown Continues

January was a “lackluster month for hiring,” as the private sector added 22,000 jobs, ADP said in a Wednesday (Feb. 4) press release announcing its January ADP National Employment Report.

This figure was down from the 37,000 jobs added during the previous month, according to the release. The December figure was revised down from the previously reported 41,000.

Year-over-year pay growth was little changed for job-stayers, at 4.5%, and slowed for job-changers, dipping from 6.6% in January 2025 to 6.4%.

“While we’ve seen a continuous and dramatic slowdown in job creation for the past three years, wage growth has remained stable,” ADP Chief Economist Nela Richardson said in the post.

Among the 10 industries tracked by ADP, the education and health services sector led job growth during the month, gaining 74,000 jobs. Other sectors that added jobs included financial activities, 14,000; construction, 9,000; trade, transportation and utilities, 4,000; and leisure and hospitality, 4,000.

The gains made by these sectors were partially offset by job losses in four sectors. Professional and business services lost 57,000 jobs; other services, 13,000; manufacturing, 8,000; and information, 5,000.

The natural resources and mining sector’s number of jobs remained unchanged during January.

The slowdown in total job growth in January continued the one seen in 2025.

“Job creation took a step back in 2025, with private employers adding 398,000 jobs, down from 771,000 in 2024,” Richardson said in the release.

The Labor Department’s Bureau of Labor Statistics said Thursday (Jan. 29) that jobless claims ticked down slightly during the week ended Jan. 24. Initial unemployment claims totaled 209,000, which was 1,000 fewer than the previous week.

The Federal Reserve’s January Beige Book found that labor conditions were mixed. Seven districts reported little to no change in hiring, with job gains largely limited to replacement roles rather than expansion. Several districts also noted fewer workers switching jobs, signaling reduced mobility and cooling wage momentum.

CNBC reported Wednesday that the Bureau of Labor Statistics nonfarm payrolls report that would normally be released Friday (Feb. 6) will be delayed by the partial government shutdown that just ended.

The revised release date for that January 2026 Employment Situation report is Feb. 11, according to the BLS website.