ADP data indicates that employers created 41,000 new jobs in December, suggesting the US job market is beginning to steady.

US Private Sector Adds 41,000 Jobs in December

According to new figures released Wednesday morning by ADP, a private payroll processing firm, American private employers created 41,000 jobs in December. This modest increase concluded a year marked by slow hiring and a surge in layoffs, highlighting a labor market that lost momentum in the latter half of 2025.

The December job gains effectively offset the losses from November. Updated ADP data revealed that private employers cut 29,000 jobs in November, which is less than the previously reported figure of 32,000.

The latest report suggests that shifts in the labor market are leading to reduced hiring activity, rather than a significant drop in the total number of workers.

Most of the job creation last month was concentrated in sectors such as education, healthcare, and leisure and hospitality. In contrast, professional and business services continued to see declines, according to ADP.

“Small businesses bounced back from November’s job cuts with stronger hiring at the end of the year, even as larger companies scaled back,” said Nela Richardson, ADP’s chief economist.

Economists surveyed by Bloomberg had anticipated a median increase of 50,000 private sector jobs for December.

The federal government is set to release its official December payroll numbers this Friday, and job openings data will be available later today. The Federal Reserve Bank of Chicago projects that the jobs report will show the unemployment rate holding steady at 4.6%, the highest level in four years.