Private Sector Adds 22,000 Jobs in January, Falling Short of Expectations

The ADP National Employment Report showed that private sector employment in the United States grew by 22,000 jobs in January 2026. This was lower than many analysts had expected, with forecasts anticipating around 45,000 new jobs.

Despite the modest job growth, workers' annual pay increased by 4.5% compared to last year. The data, produced by ADP Research in collaboration with the Stanford Digital Economy Lab, reflects ongoing caution among employers.

Analysts noted that the lower-than-expected job gains continue a recent trend where companies have been neither hiring nor firing in significant numbers.

It is a monthly report that tracks changes in private sector employment and pay in the United States, based on data from payrolls handled by ADP.

Job growth is seen as a sign of economic health. Higher job additions usually indicate more opportunities and confidence among businesses.

It means that, on average, private sector workers are earning 4.5% more than they did a year ago.

PRNewsWire

ROSELAND, N.J., Feb. 4, 2026 /PRNewswire/ -- Private sector employment increased by 22,000 jobs in January and pay was up 4.5 percent year-over-year according to the January ADP National Employment Report® produced by ADP Research in collaboration with the Stanford Digital Economy Lab ("Stanford Lab...

Schwab Network

22,000 private payrolls added in January fell below estimates for 45,000, per the ADP employment report. Kevin Hincks says it continues the "no hire, no fire" narrative cast over markets in recent months.