#United States #ADP National Employment Report #Roseland #Wage Growth #Private Sector Employment

Overview of Employment Growth in January

In January 2026, the ADP National Employment Report revealed a moderate but positive trend in the private sector, with an increase of 22,000 jobs. This report, developed through collaboration between ADP Research and the Stanford Digital Economy Lab, is crucial for understanding labor market dynamics across the United States. It aggregates anonymized weekly payroll data from over 26 million private-sector employees, providing a comprehensive view of employment trends.

Key Highlights

The report highlights several critical areas regarding job creation and wage increases:

• - Job Creation: Although the increase of 22,000 jobs may seem modest, it signifies a steady progression within the job market. This follows a notably subdued year in 2025, where only 398,000 jobs were added overall compared to 771,000 in 2024. Dr. Nela Richardson, Chief Economist at ADP, noted that while job creation has been slowing, wages have remained stable.

• - Sector Performance: The education and health services sector notably excelled, contributing a significant 74,000 jobs. In contrast, sectors such as manufacturing and professional/business services experienced declines, indicating a shift in where job growth is occurring.

• - Regional Insights: Regionally, the Midwest led in job additions, with 25,000 new jobs, while the South observed a loss of 10,000 jobs, hitting a downturn in the South Atlantic region primarily. Job changes varied notably, highlighting how different areas are recovering at different rates post-pandemic.

Wage Trends

Alongside job growth, wages also saw a healthy increase. For those remaining in their positions, pay climbed 4.5% year-over-year. This payday growth highlights a continuing commitment by employers to retain talent, suggesting a competitive market for skilled workers:

• - Wage Growth Breakdown: Job-changers experienced a decrease from previous months, with salary growth falling from 6.6% to 6.4%. It indicates varying dynamics depending on whether workers are moving between roles or staying put in their current positions.

• - Industry Variations: The growth in wages varied across sectors. For example, wages for job-stayers in education and health services grew by 4.4%, while manufacturing reported a 5% increase.

Future Outlook

The January report serves as a pivotal indicator for future labor market developments. As ADP prepares for the release of subsequent reports, including a deeper examination of regional disparities and sectoral performance, the insights derived from this data will shape expectations for 2026.

• - Impact of Revisions: This month’s report also reflects recent adjustments, aligning with the Quarterly Census of Employment and Wages. This adjustment aims to enhance accuracy in labor trend assessments.

• - Ongoing Studies: The upcoming February 2026 report, expected to be published on March 4, will continue to build upon this analysis, offering a more nuanced understanding of shifts in the labor market.