US private sector job growth started weakly in early 2026 when ADP data showed only 22,000 new jobs were created in January, well below market expectations. The figure reinforced signs of a continued slowdown in the US labor market.
January’s performance saw private job creation fall sharply to 398,000, nearly half the 771,000 jobs recorded in 2024, according to ADP.
Manufacturing saw the biggest job losses with 8,000 jobs lost, despite previously announced tariff policies and promises of job recovery. The professional and business services sector also continued to contract, while the construction sector recorded modest gains.
In contrast, the healthcare and education sectors were the main contributors to the labor market, with 74,000 jobs added in January, helping to curb the overall decline.
Market uncertainty has increased following the delay in official reports from the Labor Department due to the temporary US government shutdown, making private data such as ADP an important early indicator of the direction of the economy and labor market.
