ADP’s National Employment Report showed private‐sector payrolls increased by 41,000 jobs in December, outperforming the prior month’s upwardly revised loss of 29,000. This marks a clear turnaround from November’s downturn, with hiring largely driven by education and health services and leisure and hospitality sectors. The report is based on anonymized payroll data covering more than 26 million U.S. private‐sector employees and reflects a more robust end‐of‐year hiring trend among smaller firms.

Service‐providing industries accounted for a net gain of 44,000 positions, led by education and health services (+39,000) and leisure and hospitality (+24,000), while manufacturing shed 5,000 jobs. Natural resources, mining and construction each added 1,000 roles. Regionally, the South posted the largest increase with 54,000 jobs, driven by gains in the South Atlantic and West South Central areas, whereas the West contracted by 61,000 roles, largely due to a 59,000‐job drop in the Pacific region.

ADP’s Pay Insights revealed year‐over‐year median pay for job‐stayers held steady at +4.4%, matching November’s pace. Job‐changers saw pay growth accelerate to 6.6% from 6.3%. Among industries, financial activities led goods‐producing sectors with 5.2% increases, while leisure and hospitality posted 4.5% gains among service providers. Pay growth by firm size showed large employers (500+ employees) at 4.8%, medium firms at roughly 4.6%, and small establishments lagging at 2.3%–3.9%.

November’s total was revised from a 32,000‐job loss to a 29,000‐job loss, underscoring the volatility in late‐year data. ADP’s chief economist highlighted that small establishments rebounded, adding 9,000 roles after November losses, while large employers collectively added just 2,000 jobs. The next ADP National Employment Report is scheduled for release on February 4, 2026 at 8:15 a.m. ET, offering investors a timely gauge of private‐sector labor market momentum as they prepare for the January data.