#ADPDataDisappoints

The latest ADP National Employment Report showed U.S. private sector job growth at only 22,000 in January 2026, far below economist forecasts (~45,000).

This weak number is a sign of a significant slowdown in hiring, continuing a trend of softer job creation.

Manufacturing and professional services were among sectors showing stagnant or negative employment, offsetting gains in health and education.

The slowdown follows downward revisions to prior months, indicating that overall labor market momentum has eased.

Markets were looking to this report ahead of the official government jobs data release, which has been delayed.

Weak ADP data often raises expectations of U.S. rate cuts from the Federal Reserve, as softer hiring hints at cooling inflation pressures.

Despite the weak jobs number, the U.S. dollar has shown surprising resilience in some markets.

The data disappointed traders and highlighted that the labor market may not be as strong as headline unemployment figures suggest.

Investors are now closely watching the upcoming official government employment figures for a clearer picture.

Bottom line: The ADP report has disappointed expectations, showing weak hiring growth and reinforcing concerns that the U.S. job market momentum is slowing—impacting market sentiment, Fed policy expectations, and risk asset behavior