US January ADP private payrolls rise by 22,000, far below expectations

US private-sector employment data for last month came in well below market expectations.

According to the Automatic Data Processing (ADP) employment report released on the 4th (local time), US nonfarm employment rose by 22,000 from the previous month. The figure was far below the consensus forecast (45,000). It was also 19,000 fewer than the prior month, December 2025 (41,000).

By sector, employment increased in finance (14,000) and construction (9,000). By contrast, employment declined in manufacturing (-8,000) and other services (-13,000). ADP said private employment in the US has shown signs of recovery in recent months, but most new jobs were concentrated in the education and health services sector, including hotels and restaurants.

Some observers said that without the 74,000 increase in education and health services employment, overall employment could have fallen. ADP analyzed that a low-hiring, low-layoffs environment little changed from late last year is continuing into 2026.

The ADP report is typically released two days ahead of the US Bureau of Labor Statistics (BLS) employment report under the Department of Labor and is seen as a kind of “preview.” However, it does not always move in the same direction as the government’s official statistics.