ADP data shows employers added 41,000 jobs in December as US labor market shows signs of stabilizing
- - ADP data shows employers added 41,000 jobs in December as US labor market shows signs of stabilizing
Emma OckermanJanuary 8, 2026 at 1:18 AM
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US private employers brought on 41,000 new positions in December, according to data from the private payroll processor ADP out Wednesday morning, capping a year that saw lackluster hiring and rising layoffs define a labor market that sputtered in the second half of 2025.
Still, December's gains essentially erased November's losses, with revised ADP data from the previous month's report showing private employers dropped 29,000 jobs in November, fewer than the previously reported 32,000.
Wednesday's report also shows signs that changing labor market dynamics are creating less demand for new workers rather than an outright reduction in the overall workforce.
"Even in those sectors that shed jobs this month, the shedding was not as strong as last month," ADP chief economist Nela Richardson said on a call with reporters Wednesday morning. "In that sense, it's better news than we saw in November."
Read more: Jobs, inflation, and the Fed: How they're all related
Employers with fewer than 50 workers also added jobs last month for the first time since July.
In a note following Wednesday's release, Matthew Martin, senior US economist at Oxford Economics, said continued hiring among small firms, which have felt the pressure from higher costs and economic uncertainty most acutely, "would go a long way in stabilizing labor market conditions." These companies account for about 40% of overall employment in the US.
The bulk of private job growth last month came from education and health services, as well as leisure and hospitality, while professional and business services continued to scale lower, ADP's report said. Manufacturing also shed positions.
A 'Now Hiring' sign is posted outside of a business on Oct. 3, 2025, in Miami. (Joe Raedle/Getty Images) (Joe Raedle via Getty Images)
The month's sector-specific trends could be another sign of an economy that's being driven by high-income consumers.
"Health services is an expensive type of service for most consumers. Leisure and hospitality is a discretionary service for all consumers," Richardson said. "These two sectors are consistent with a K-shaped economy."
A Bloomberg survey of economists had seen a median gain of 50,000 private positions for December from the ADP data.
Year-over-year pay growth for job-stayers, meanwhile, was flat from November, while pay growth edged up for job-changers, ADP said.
"To see that pop up a little bit shows that there could be some underlying momentum in the labor market," Richardson said.
Official payroll data for December is due out from the federal government this Friday, while job openings statistics will be published later this morning. The Federal Reserve Bank of Chicago estimates the jobs report will show unemployment holding steady at 4.6%, which is a four-year high.
Emma Ockerman is a reporter covering the economy and labor for Yahoo Finance. You can reach her at [email protected].
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