In December, U.S. private employers added 41,000 new jobs, according to data released by payroll processor ADP, providing a year-end boost to a labor market that struggled with minimal hiring and rising layoffs throughout the latter half of 2025. This month’s gains effectively offset the prior month’s decline, as November’s job losses were revised down to a drop of 29,000, an improvement from the earlier estimate of 32,000.
The report reveals shifting dynamics in the labor market, indicating that while there is less demand for new workers, it does not necessarily signal an overall job reduction. The most significant job creation in December came from sectors such as education, health services, and leisure and hospitality, while the professional and business services sector continued to experience declines.
ADP’s Chief Economist Nela Richardson commented on the report, noting, “Small establishments recovered from November job losses with positive end-of-year hiring, even as large employers pulled back.” This suggests that smaller businesses are bouncing back, contributing positively to the job market despite larger companies tightening their hiring practices.
Economists surveyed by Bloomberg had anticipated a median increase of 50,000 private jobs for December. The official jobs report from the federal government is expected to be released this Friday, alongside statistics on job openings. Analysts at the Federal Reserve Bank of Chicago predict that unemployment will hold steady at 4.6%, which represents a four-year high.
This recent uptick in job creation, particularly in critical sectors such as health and education, is a positive sign amidst the broader challenges facing the labor market, indicating potential resilience and adaptability among smaller businesses.