The US labor market faces a cold start in 2026, with weakening hiring momentum.
TL;DR
U.S. private sector hiring rose modestly in December, signaling a cooling labor market with weak momentum into 2026, as small firms offset large employer contractions.
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On January 7, U.S. businesses reported a modest increase in hiring in December, foreshadowing weak growth momentum heading into 2026. According to ADP Research, private sector employment rose by 41,000 jobs, falling short of expectations after a decline last month.
"While large employers are contracting, smaller firms have recovered from November layoffs by actively hiring at the end of the year," ADP Chief Economist Nela Richardson stated in a press release. The report further confirms that the labor market is gradually cooling, but not rapidly deteriorating. Recent sluggish hiring activity and a rising unemployment rate have not only affected economists' forecasts for the new year but also Americans' own views on the employment outlook. (Jinshi)