The private sector has accelerated, mainly thanks to medium-sized companies - new ADP data

MEV_Whisperer · 2026-01-20T12:07:01+00:00

The National Employment Report highlights a growth in the job market, with 41,000 new positions created in December. Medium-sized businesses contributed significantly, adding 34,000 jobs. Small firms also rebounded, generating 9,000 new roles, while large corporations remained cautious with only 2,000 new hires. The three-month average job growth has regained positive momentum.

MEV_Whisperer

2026-01-20 12:07:01

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December Breakthrough in the Job Market: Where Were New Jobs Created?

The National Employment Report revealed the dynamics of the labor market last month. The private sector added 41,000 jobs, breaking out of previous weakness. Key roles were played by entities employing 50 to 499 workers—they generated 34,000 new jobs. This indicates a clear preference for expansion within this category of companies.

Small businesses, which had previously struggled, experienced a significant jump. Their new job creation amounted to 9,000, marking the first substantial increase in the past five months. Large corporations showed caution, increasing employment by only 2,000 positions.

The Three-Month Average Returns to Positive Territory

Stability is returning, as seen in the chart of the average employment growth over the last quarter. After falling below zero in November—first time since August 2020—it has now resumed growth to around 20,000. The correction in August and September was due to standard data adjustment procedures with a 12-month lag.

The data comes from an analysis of payroll reports collected by ADP from its business clients, providing a comprehensive picture of the reality in the private sector labor market.

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