U.S. Private Sector Job Growth Dips to 22,000 in January 2026 - Market Cooling

[Para 1: The Lead] U.S. private sector job growth slowed significantly in January 2026, according to ADP's "Small Non-Farm" report published on February 4, 2026. The report revealed a mere 22,000 new jobs were added, far below market expectations and a decline from the revised 30,000 jobs in December 2025. This marks a continuation of labor market cooling trends. [Para 2-3: Supporting details & Context] ADP data indicates that without the education and healthcare sectors, which added 74,000 jobs, the private sector would have seen a job loss. Financial activities added 14,000 jobs, construction 9,000, and wholesale, transportation, utilities, and leisure & hospitality each added approximately 4,000 jobs. Notably, professional and business services, other services, and manufacturing saw job reductions of 57,000, 13,000, and 8,000, respectively, the latter continuing a downward trend since March 2024. Medium-sized companies, with 50-499 employees, contributed most to new job creation. Small businesses saw job growth stabilize, while large companies experienced a reduction of 18,000 jobs. Wages showed minimal change, with year-over-year growth rates for workers changing jobs at 6.4% and for those staying at 4.5%. ADP's chief economist noted that while hiring has been consistently slowing over the past three years, wage growth has remained relatively stable.