Private sector employment increased in January and annual pay was up again year-over-year, according to the ADP National Employment Report released Wednesday. Hiring momentum in the last quarter of 2024 carried into January with some exceptions, including manufacturing.
“We had a strong start to 2025, but it masked a dichotomy in the labor market,” Nela Richardson, chief economist, ADP, said. “Consumer-facing industries drove hiring, while job growth was weaker in business services and production.”
Employment rose by 183,000 jobs in January and annual pay was up 4.7 percent year-over-year.
When looking at where the jobs surfaced, the service-providing sector saw the biggest increases: Trade/transportation/utilities increased by 56,000 jobs; Leisure/hospitality added 54,000 positions; and Education/health services jumped 20,000 spots.
Medium sized establishments, those with 50-499 employees saw the largest bump in additions at 92,000 positions.
