ADP Reports 22,000 New Jobs Created in January by Private Sector
Global advisor to CEOs and corporate boards Ram Charan joins ‘Mornings with Maria’ to discuss the growth of AI in American businesses and the impact of technology on jobs.
According to payroll processing firm ADP, companies in the private sector added just 22,000 jobs in January. This figure significantly falls short of economists’ expectations, which anticipated a gain of 48,000 jobs. Additionally, the previous month’s payrolls number was revised downward, showing a gain of 37,000 instead of the initially reported 41,000.
ADP chief economist Nela Richardson commented, “Job creation took a step back in 2025, with private employers adding 398,000 jobs, down from 771,000 in 2024.” This trend indicates a continuous and dramatic slowdown in job creation over the past three years, although wage growth has remained stable throughout this period.
In December, education and health services led the way in job creation, adding 74,000 positions. The financial activities sector contributed an additional 14,000 jobs, while construction saw a gain of 9,000 positions. Leisure and hospitality, along with trade, transportation, and utilities, each added 4,000 jobs. However, hiring in natural resources and mining remained flat for the month.
On the downside, the professional and business services sector experienced a significant loss, shedding 57,000 jobs. Other services and manufacturing sectors also faced declines, losing 13,000 and 8,000 jobs, respectively. The information sector saw a decrease of 5,000 positions.
Despite the fluctuations in job creation, wage growth in December remained relatively unchanged from the previous month. Workers who stayed in their roles experienced a pay increase of 4.5% compared to the prior year. However, pay gains for those changing jobs saw a slight decline, dropping to 6.4% from 6.6% in December.
This is a breaking news story. Please check back for updates.
Global advisor to CEOs and corporate boards Ram Charan joins ‘Mornings with Maria’ to discuss the growth of AI in American businesses and the impact of technology on jobs.
According to payroll processing firm ADP, companies in the private sector added just 22,000 jobs in January. This figure significantly falls short of economists’ expectations, which anticipated a gain of 48,000 jobs. Additionally, the previous month’s payrolls number was revised downward, showing a gain of 37,000 instead of the initially reported 41,000.
ADP chief economist Nela Richardson commented, “Job creation took a step back in 2025, with private employers adding 398,000 jobs, down from 771,000 in 2024.” This trend indicates a continuous and dramatic slowdown in job creation over the past three years, although wage growth has remained stable throughout this period.
In December, education and health services led the way in job creation, adding 74,000 positions. The financial activities sector contributed an additional 14,000 jobs, while construction saw a gain of 9,000 positions. Leisure and hospitality, along with trade, transportation, and utilities, each added 4,000 jobs. However, hiring in natural resources and mining remained flat for the month.
On the downside, the professional and business services sector experienced a significant loss, shedding 57,000 jobs. Other services and manufacturing sectors also faced declines, losing 13,000 and 8,000 jobs, respectively. The information sector saw a decrease of 5,000 positions.
Despite the fluctuations in job creation, wage growth in December remained relatively unchanged from the previous month. Workers who stayed in their roles experienced a pay increase of 4.5% compared to the prior year. However, pay gains for those changing jobs saw a slight decline, dropping to 6.4% from 6.6% in December.
This is a breaking news story. Please check back for updates.
