Private sector employment in the United States rose less than analysts expected in January, payroll firm ADP said Wednesday, with manufacturing leading the slowdown in the sector. Private employers added 22,000 jobs last month, significantly below the 45,000 jobs analysts expected in a median forecast, as per a report on AFP.
January was a "lackluster month for hiring," ADP said. Education and health services added a significant number of jobs, but manufacturing lost 8,000 positions. The report said that the manufacturing sector "has lost jobs every month since March 2024."
The ADP figures come amid simmering concerns about the labor market in the world's biggest economy, with the overall unemployment rate creeping up towards the second half of last year.
Wednesday's figures would have come days before the US government released official data on the employment market. But that publication originally set for Friday now appears to be delayed by a temporary federal shutdown.
"Job creation took a step back in 2025, with private employers adding 398,000 jobs, down from 771,000 in 2024," said ADP chief economist Nela Richardson.
She said there has been a "continuous and dramatic slowdown in job creation for the past three years," even though wage growth has been steady.
The ADP report is jointly developed with the Stanford Digital Economy Lab. It has been a poor predictor of the Bureau of Labor Statistics' private payrolls estimate. The BLS' more comprehensive and closely watched employment report for January, which was due for release on Friday, has been delayed by the partial shutdown of the federal government.
The three-day shutdown ended on Tuesday. The labor market has largely been in what economists call a "low-hire, low-fire" state, blamed on import tariffs and the rise of artificial intelligence.
Federal Reserve Chair Jerome Powell said last week "labor market indicators suggest that conditions may be stabilizing after a period of gradual softening." The U.S. central bank left its benchmark overnight interest rate in the 3.50%-3.75% range.
Hiring Crisis in USA
January was a "lackluster month for hiring," ADP said. Education and health services added a significant number of jobs, but manufacturing lost 8,000 positions. The report said that the manufacturing sector "has lost jobs every month since March 2024."
The ADP figures come amid simmering concerns about the labor market in the world's biggest economy, with the overall unemployment rate creeping up towards the second half of last year.
Wednesday's figures would have come days before the US government released official data on the employment market. But that publication originally set for Friday now appears to be delayed by a temporary federal shutdown.
"Job creation took a step back in 2025, with private employers adding 398,000 jobs, down from 771,000 in 2024," said ADP chief economist Nela Richardson.
She said there has been a "continuous and dramatic slowdown in job creation for the past three years," even though wage growth has been steady.
The ADP report is jointly developed with the Stanford Digital Economy Lab. It has been a poor predictor of the Bureau of Labor Statistics' private payrolls estimate. The BLS' more comprehensive and closely watched employment report for January, which was due for release on Friday, has been delayed by the partial shutdown of the federal government.
The three-day shutdown ended on Tuesday. The labor market has largely been in what economists call a "low-hire, low-fire" state, blamed on import tariffs and the rise of artificial intelligence.
Federal Reserve Chair Jerome Powell said last week "labor market indicators suggest that conditions may be stabilizing after a period of gradual softening." The U.S. central bank left its benchmark overnight interest rate in the 3.50%-3.75% range.
