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Insights from the December ADP National Employment Report

The latest ADP National Employment Report, released on January 7, 2026, reveals a noteworthy uptick in private sector employment and wage growth for December 2025. According to the report, private employers added 41,000 jobs in December, reflecting a healthy employment growth trajectory following a challenging previous month. The annual pay for workers also saw a significant increase of 4.4%, providing a positive outlook for the American workforce heading into the new year.

This report is the result of a collaborative effort between ADP Research and the Stanford Digital Economy Lab, and it serves as a vital indicator of employment trends based on anonymized payroll data from over 26 million private-sector employees across various industries in the United States. The findings offer a timely pulse check on the labor market, particularly amidst ongoing economic fluctuations.

Job Growth Breakdown by Industry

December's job gains were predominantly seen in the education and health services, alongside the leisure and hospitality sectors, which collectively contributed significantly to the overall employment figures. Here’s a detailed look at the job changes by industry:

• - Goods-producing industries experienced a slight decline with a net loss of 3,000 jobs. A breakdown shows:

- Natural resources/mining: +1,000
- Construction: +1,000
- Manufacturing: -5,000

• - Conversely, service-providing sectors reported a robust increase of 44,000 jobs, making a meaningful contribution to the overall employment landscape.

- Trade/transportation/utilities: +11,000
- Information: -12,000
- Financial activities: +6,000
- Professional/business services: -29,000
- Education/health services: +39,000
- Leisure/hospitality: +24,000
- Other services: +5,000

Regional Employment Trends

From a regional perspective, the South led the way with an addition of 54,000 jobs, followed closely by the Northeast, which contributed 40,000 jobs to the national total. Notably, the West region dealt with the largest decline, losing 61,000 jobs. Here’s how the regions fared:

• - Northeast: +40,000
• - Midwest: +9,000
• - South: +54,000
• - West: -61,000

Small vs. Large Establishments

Interestingly, small establishments (1-49 employees) reversed previous losses, adding around 9,000 jobs, driven primarily by medium-sized firms (50-249 employees) with a total of 34,000 new jobs. Large employers (500+ employees) remained stagnant with a minimal addition of 2,000 jobs.

Wage Growth Insights

The wage growth segment of the report highlighted that pay for those who stayed in their positions, termed as job-stayers, remained steady at 4.4% year-over-year, consistent with the prior month. However, for employees who switched jobs, the pay growth showed a noteworthy spike, rising to 6.6% from 6.3%. Pay increases varied by industry and establishment size:

• - Job-stayers:

- Goods-producing: 4.8%
- Service-providing: 4.3%

• - Job-changers:

- Overall increase: 6.6%

Notable pay increases were observed in the financial sector and health services, showcasing competitive market dynamics.

Conclusion

In summary, the December ADP National Employment Report reflects a cautiously optimistic labor market at the year’s end. With increased job creation and wage growth, relatively positive trends are emerging despite previous economic challenges. The data will be closely monitored as businesses and policymakers look to maintain and build upon this momentum into 2026.

For more details on the report, including historical data and future release dates, visit ADP Employment Report.