Private Sector Job Creation Sees Positive Turn in December

A “Join Our Team” flyer at the Appalachian State University internship and job fair in Boone, North Carolina, US, on Wednesday, Oct. 1, 2025.

Allison Joyce | Bloomberg | Getty Images

Private sector job creation turned positive in December, albeit at a slightly softer pace than expected, according to a report by payrolls processing firm ADP. Companies added 41,000 hires for the month, a reversal from the loss of 29,000 in November, providing a positive sign for a labor market that otherwise struggled as 2025 came to a close.

Industry Breakdown and Job Gains

Payroll growth came entirely in services industries, with education and health-related fields adding 39,000 jobs and leisure and hospitality contributing 24,000. Trade, transportation, and utilities gained 11,000 while financial services rose by 6,000. However, these gains were offset by losses of 29,000 in professional and business services and 12,000 in information services. Goods-producing industries lost 3,000, due primarily to a drop of 5,000 in manufacturing.

Nearly all the job gains came in companies employing fewer than 500 workers, with larger firms adding just 2,000. According to ADP’s chief economist, Nela Richardson, “Small establishments recovered from November job losses with positive end-of-year hiring, even as large employers pulled back.” The November total was revised from an initially reported loss of 32,000.

Wage Gains and Upcoming Labor Market Reports

Wage gains continued to be tempered, with those staying in their jobs seeing an average annual increase of 4.4%, unchanged from November, while job changers saw gains of 6.6%, or 0.3 percentage point better than the prior month. The report comes two days ahead of the more closely watched nonfarm payrolls count from the Bureau of Labor Statistics, which had been hampered by the government shutdown. Economists surveyed by Dow Jones expect 73,000 new jobs for the month, up from 64,000 in November, while the unemployment rate is seen edging down to 4.5%.

For more information on the ADP jobs report for December 2025, visit Here

Smart Tip for Readers

When analyzing job market trends, consider looking beyond the headline numbers and delve into industry-specific data to gain a more nuanced understanding of the labor market’s performance and potential opportunities for growth and employment.