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Jan 7, 2026 12:00 PM

Private Hiring Rebounds In December, But Labor Market Still Limping

A closely followed private-sector hiring gauge showed U.S. job growth rebounded in December, though the pace remained well below levels typically associated with a healthy labor market.

Private businesses added 41,000 workers in December 2025, reversing a revised loss of 29,000 jobs in November, according to the latest National Employment Report from ADP. The increase fell short of economists' expectations for a 47,000 gain.

"Small establishments recovered from November job losses with positive end-of-year hiring, even as large employers pulled back," said Nela Richardson, ADP's chief economist, highlighting a growing divergence in labor demand across firm sizes.

Where Did The Jobs Come From?

Service-providing industries accounted for nearly all December's gains, adding 44,000 jobs. Education and health services led with 39,000 positions, followed by leisure and hospitality with 24,000.

Trade, transportation and utilities added 11,000. Professional and business services lost 29,000 ...