ADP National Employment Report: December Sees 41,000 Jobs Added with 4.4% Pay Increase
In December, private sector employment rose by 41,000 jobs and annual pay increased by 4.4% year-over-year, according to the latest ADP National Employment Report produced by ADP Research in partnership with the Stanford Digital Economy Lab. The report underscores a continuing trend of employment growth amidst fluctuating market conditions.
Overview of Employment Trends
The ADP National Employment Report serves as a vital indicator of the labor market, leveraging anonymized payroll data from over 26 million private-sector employees in the United States. This comprehensive analysis, along with ADP's Pay Insights—which includes observations from more than 15 million pay changes monthly—provides an accurate, up-to-date snapshot of employment dynamics.
Dr. Nela Richardson, Chief Economist at ADP, commented, "Small establishments recovered from November job losses with positive end-of-year hiring, even as large employers pulled back." This reflects the resilience of smaller businesses in a shifting employment landscape.
Key Employment Changes by Industry
- Private Employment Growth: 41,000 jobs added in December
- Goods-Producing Sector: -3,000 jobs
- Natural Resources/Mining: 1,000 jobs
- Construction: 1,000 jobs
- Manufacturing: -5,000 jobs
- Service-Providing Sector: 44,000 jobs
- Trade/Transportation/Utilities: 11,000 jobs
- Financial Activities: 6,000 jobs
- Professional/Business Services: -29,000 jobs
- Education/Health Services: 39,000 jobs
- Leisure/Hospitality: 24,000 jobs
Regional Employment Changes
Employment growth varied across U.S. regions, with notable changes including:
- Northeast: 40,000 jobs added
- Mid-Atlantic: 51,000 jobs added
- South: 54,000 jobs added
- West: -61,000 jobs lost
Annual Pay Growth Analysis
In terms of compensation, December's pay growth remained stable for job-stayers at 4.4%, similar to November. However, job-changers experienced an acceleration in pay growth to 6.6% from 6.3%.
- Median Pay Growth for Job-Stayers: 4.4%
- Median Pay Growth for Job-Changers: 6.6%
Pay insights by industry illustrate variations, with job-stayers in various sectors experiencing different growth rates:
- Financial Activities: 5.2%
- Construction: 4.2%
- Leisure/Hospitality: 4.5%
Looking Ahead: Upcoming Reports
Revisions to the job growth numbers from previous months have been made, with November's total adjusted from -32,000 to -29,000. The next ADP National Employment Report is scheduled for release on February 4, 2026, at 8:15 a.m. ET, providing continued insights into market trends.
About ADP
ADP (NASDAQ: ADP) has played a pivotal role in shaping the workforce for over 75 years. As a leader in HR and payroll solutions, ADP delivers tailored services to clients ranging from small businesses to multinational enterprises. Their commitment to "Always Designing for People" reflects their dedication to enhancing client relations and employee success across more than 1.1 million clients in over 140 countries.