Private Payroll Growth Misses Expectations in January

ADP reports slower job creation as market awaits official government data

Published on Feb. 4, 2026

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According to the private payroll processor ADP, US private employers added just 22,000 positions in January, falling short of economists' expectations of 45,000 new jobs. This marks a continued slowdown in job creation, with private employers adding only 398,000 jobs in 2025, down from 771,000 the previous year.

Why it matters

The weaker-than-expected private payroll data comes as the market awaits the release of the official government jobs report, which has been delayed due to the recent partial government shutdown. The private data provides an early glimpse into the state of the job market, which has been defined by stagnation in recent years.

The details

The January slowdown was led by a drop of 8,000 jobs in the manufacturing sector, less than a year after President Trump's tariffs and promises to restore positions to the industry. Professional and business services also continued to decline, while construction added roles.

  • ADP reported the private payroll data on Wednesday, February 4, 2026.
  • The government's official jobs report, originally scheduled for release on Friday, February 6, 2026, has been delayed due to the partial government shutdown.

The players

ADP

A private payroll processor that provides monthly data on private sector employment in the United States.

Nela Richardson

The chief economist at ADP.

President Trump

The former president who implemented tariffs and promised to restore manufacturing jobs in the United States.

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What they’re saying

“Job creation took a step back in 2025, with private employers adding 398,000 jobs, down from 771,000 in 2024. While we've seen a continuous and dramatic slowdown in job creation for the past three years, wage growth has remained stable.”

— Nela Richardson, Chief Economist, ADP (ADP)

What’s next

The official government jobs report, originally scheduled for release on Friday, February 6, 2026, has been delayed due to the partial government shutdown. Once released, the data will provide a more comprehensive look at the state of the job market, including revisions to baseline 2025 data.

The takeaway

The weaker-than-expected private payroll growth in January, combined with the continued slowdown in job creation over the past three years, suggests the labor market may be losing some momentum. However, the market will have to wait for the official government data to get a clearer picture of the job market's health.