ADP National Employment Report: Private Sector Employment Increased by 41,000 Jobs in December; Annual Pay was Up 4.4%
Rhea-AI Summary
ADP (ADP) reported private sector employment rose by 41,000 jobs in December 2025 and annual pay for job-stayers was up 4.4% year‑over‑year, with job-changer pay growth accelerating to 6.6%. Hiring gains were led by education & health services (+39,000) and leisure & hospitality (+24,000), while professional & business services lost 29,000 jobs and the West region fell 61,000. Small establishments added 9,000 jobs and medium establishments added 34,000. The November jobs total was revised from -32,000 to -29,000. ADP says its report uses anonymized payroll data covering over 26 million private‑sector employees; the next report is due Feb 4, 2026 at 8:15 a.m. ET.
Positive
- Private sector jobs +41,000 in December 2025
- Job-stayer pay growth steady at 4.4% YoY
- Job-changer pay growth accelerated to 6.6% YoY
- Education & health services hiring +39,000
Negative
- Professional & business services jobs -29,000
- West region employment -61,000
- Manufacturing jobs -5,000
News Market Reaction
On the day this news was published, ADP gained 0.05%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Key software peers showed mixed moves: ADBE up 1.82%, CDNS up 4.36%, INTU up 2.7%, NOW up 0.94%, while MSTR was down 5.34%. With no broad, uniform direction and ADP’s own move modest, the reaction appears more stock-specific to its macro data role than part of a sector rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| 2026-01-05 | Earnings date notice | Neutral | +1.8% | Set expectations for Q2 FY26 results and earnings call timing. |
| 2025-12-23 | Employment data update | Positive | -1.1% | Preliminary NER Pulse showed continued but slowing job growth. |
| 2025-12-16 | Employment data update | Positive | -1.1% | NER Pulse signaled hiring rebound after weeks of job losses. |
| 2025-12-11 | Product integration | Positive | +2.1% | RUN integration with Thatch ICHRA to enhance small-business benefits. |
| 2025-12-10 | Retirement product launch | Positive | +0.4% | Launch of Save4Retirement pooled employer plan to cut 401(k) complexity. |
Recent ADP National Employment Report updates have produced modest and sometimes negative price moves, while product and partnership launches have tended to coincide with small positive reactions.
Over the last two months, ADP news has alternated between macro labor data and product initiatives. Employment-related releases on Dec 16, 2025 and Dec 23, 2025 highlighted hiring rebounds and steady job growth but coincided with ~1% share price declines. In contrast, product announcements on Dec 10–11, 2025 around retirement plans and small-business healthcare integration aligned with modest gains. The latest full ADP National Employment Report, showing 41,000 jobs added and 4.4% pay growth, fits into this ongoing macro-data narrative ahead of Q2 FY26 earnings.
Market Pulse Summary
This announcement highlights ADP’s role in tracking U.S. labor conditions, with December data showing 41,000 private jobs added and job-stayer pay up 4.4% year-over-year. Combined with prior NER Pulse updates, it suggests a continued focus on labor-market transparency ahead of ADP’s Q2 FY26 results on Jan 28, 2026. Investors may monitor future reports and earnings for how employment trends intersect with ADP’s product adoption and revenue trajectory.
AI-generated analysis. Not financial advice.
The ADP National Employment Report is an independent measure of the labor market based on the anonymized weekly payroll data of more than 26 million private-sector employees in
"Small establishments recovered from November job losses with positive end-of-year hiring, even as large employers pulled back," said Dr. Nela Richardson, chief economist, ADP.
December 2025 Report Highlights
View the ADP National Employment Report and interactive charts at www.adpemploymentreport.com.
JOBS REPORT
Private employers added 41,000 jobs in December
December brought a rebound in hiring, led by education and health services, and leisure and hospitality.
Change in
Change by Industry
- Goods-producing: -3,000
- Natural resources/mining 1,000
- Construction 1,000
- Manufacturing -5,000
- Service-providing: 44,000
- Trade/transportation/utilities 11,000
- Information -12,000
- Financial activities 6,000
- Professional/business services -29,000
- Education/health services 39,000
- Leisure/hospitality 24,000
- Other services 5,000
Change by
- Northeast: 40,000
- New England -11,000
- Mid-Atlantic 51,000
- Midwest: 9,000
- East North Central 9,000
- West North Central 0
- South: 54,000
- South Atlantic 29,000
- East South Central 9,000
- West South Central 16,000
- West: -61,000
- Mountain -2,000
- Pacific -59,000
Change by Establishment Size
- Small establishments: 9,000
- 1-19 employees 4,000
- 20-49 employees 5,000
- Medium establishments: 34,000
- 50-249 employees 29,000
- 250-499 employees 5,000
- Large establishments: 2,000
- 500+ employees 2,000
PAY INSIGHTS
Job-stayer pay growth was unchanged in December
Year-over-year pay for job-stayers rose 4.4 percent in December, unchanged from November. For job-changers, the pace of pay growth accelerated to 6.6 percent from 6.3 percent.
Median Change in Annual Pay
- Job-stayers
- Job-changers
Median Change in Annual Pay for Job-Stayers by Industry
- Goods-producing:
- Natural resources/mining
4.3% - Construction
4.2% - Manufacturing
4.8%
- Service-providing:
- Trade/transportation/utilities
4.2% - Information
4.1% - Financial activities
5.2% - Professional/business services
4.1% - Education/health services
4.3% - Leisure/hospitality
4.5% - Other services
4.0%
Median Change in Annual Pay for Job-Stayers by Firm Size
- Small firms:
- 1-19 employees
2.3% - 20-49 employees
3.9%
- Medium firms:
- 50-249 employees
4.6% - 250-499 employees
4.7%
- Large firms:
- 500+ employees
4.8%
To see Pay Insights by
The November total number of jobs added was revised from -32,000 to -29,000.
For additional information about the ADP National Employment Report, including historical files, employment and pay data, methodology, and a calendar of release dates, please visit https://adpemploymentreport.com/.
The January 2026 ADP National Employment Report will be released on February 4, 2026 at 8:15 a.m. ET.
About ADP Research
The mission of ADP Research is to make the future of work more productive through data-driven discovery. Companies, workers, and policy makers rely on our finely tuned data and unique perspective to make informed decisions that impact workplaces around the world.
To subscribe to monthly email alerts or obtain additional information about ADP Research, including employment and pay data, methodology, and a calendar of release dates, please visit https://www.adpresearch.com.
About ADP (NASDAQ: ADP)
ADP has been shaping the world of work with innovation and expertise for more than 75 years. As a global leader in HR and payroll solutions, ADP continuously works to solve business challenges for our clients and their workers, from simple, easy-to-use tools for small businesses to fully integrated platforms for global enterprises – and everything in between. Always Designing for People means we're focused on just that – people. We use our unmatched AI-driven insights and proven expertise to design innovative solutions that help people achieve greater success at work. More than 1.1 million clients across 140+ countries rely on ADP's exceptional service to support their people and drive their business forward. HR, Talent, Time Management, Benefits, Compliance, and Payroll. Learn more at ADP.com
ADP, the ADP logo, and Always Designing for People, ADP National Employment Report, and ADP Research are registered trademarks of ADP, Inc. All other marks are the property of their respective owners.
Copyright © 2026 ADP, Inc. All rights reserved.
ADP-Media
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SOURCE ADP, Inc.
FAQ
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