Private sector employment in the United States increased by a modest 22,000 jobs in January 2026, according to the ADP National Employment Report produced by ADP Research in collaboration with the Stanford Digital Economy Lab. Annual pay growth for job-stayers remained stable at 4.5 percent year-over-year, reflecting continued resilience in wages despite a broader slowdown in job creation.
Quick Intel
Modest Job Gains Amid Ongoing Slowdown
Job creation in the private sector continued its downward trajectory in January 2026. After adding 398,000 jobs across 2025—down significantly from 771,000 in 2024—employers posted only 22,000 net additions last month. The education and health services sector provided the primary support, contributing 74,000 jobs. In contrast, professional and business services experienced the largest decline at -57,000, followed by ongoing losses in manufacturing, which has shed jobs monthly since March 2024.
Industry and Regional Breakdown
Sector performance varied widely. Within goods-producing industries, construction added 9,000 jobs while manufacturing lost 8,000. Service-providing sectors showed mixed results, with financial activities up 14,000 and leisure/hospitality up 4,000, but information down 5,000 and other services down 13,000. Regionally, the Midwest led with 25,000 jobs added, driven by gains in both East North Central and West North Central divisions. The Northeast followed with 17,000 additions. The South and West reported net losses, influenced by sharp declines in the South Atlantic and Pacific regions.
Employment Trends by Company Size
Establishment size played a key role in January's results. Medium-sized firms (50-499 employees) added 41,000 jobs, with the 50-249 employee category contributing 37,000. Small establishments (1-49 employees) showed no net change, as gains in the smallest firms were offset by losses in the 20-49 category. Large employers with 500+ employees reduced staffing by 18,000, highlighting caution among bigger organizations.
Stable Wage Growth Persists
Wage trends remained consistent despite softer hiring. Pay for job-stayers increased 4.5 percent year-over-year in January, unchanged from recent levels. Job-changers experienced a slight slowdown, with annualized pay growth easing to 6.4 percent. By industry, manufacturing led job-stayer pay increases at 5.0 percent, followed by financial activities at 5.2 percent. Large firms offered the highest pay growth for stayers at 5.0 percent, while the smallest firms lagged at 2.5 percent.
This report, based on anonymized payroll data from over 26 million private-sector employees, provides a timely view of labor market dynamics. The subdued job gains underscore a cooling trend in private-sector hiring, even as wage stability supports consumer spending power in the broader economy.
About ADP Research
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