U.S. Labor Market: Key Figures from the January ADP Report Show Deep Sectoral Polarization

MemeEchoer · 2026-02-12T15:01:38+00:00

The ADP report for January highlights significant disparities in the U.S. labor market, showing growth in health and finance while sectors like professional services and manufacturing experienced job losses. Medium-sized businesses drove net job creation, contrasting with losses in large firms. Despite these variances, overall wage growth remained stable at 4.5%, indicating resilience among workers who retained their positions.

MemeEchoer

2026-02-12 15:01:38

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The US January ADP report presents significant figures that reveal a marked bifurcation in the American labor market. According to data reported by Jin10, the employment landscape not only reflects growth in certain sectors but also substantial contractions in others, indicating a trend of uneven recovery.

Winning and Losing Sectors: A Clear Contrast in Market Figures

The notable figures from the report reveal a clear division between expanding and contracting industries. On the positive side, the healthcare sector continues to be the main driver of employment, providing ongoing stability in hiring. Financial activities added 14,000 jobs, construction saw an increase of 9,000 employees, and sectors such as trade, transportation, utilities, and leisure and hospitality each gained 4,000 positions.

However, other branches experienced significant declines. Professional and business services led the losses with 57,000 jobs eliminated, while other services fell by 13,000 positions, and manufacturing contracted by 8,000 jobs. This disparity highlights a structural transformation in the US economy, where traditional sectors are losing ground to specialized service and commercial activities.

The Business Gap: Size and Employment Performance

The figures also show fragmentation based on company size. Medium-sized companies, with 50 to 499 employees, were solely responsible for all net job creation during the period. In contrast, employment in small businesses remained relatively unchanged, while large corporations experienced a contraction of 18,000 positions.

This pattern suggests that medium-sized companies are navigating the economic environment with greater agility, while large firms face deeper structural adjustments, possibly related to automation and process optimization.

Wage Pressure: A Constant in the Labor Market

Regarding compensation, wage growth remained generally stable. Employees who retained their current roles saw an annual wage increase of 4.5%, a figure aligned with December’s records. This consistency in wage growth, despite sectoral labor volatility, indicates that workers who keep their positions do not lose purchasing power, although the market experiences significant turbulence in employment distribution.

The significant figures from January underscore a transitioning labor market, where growth opportunities coexist with considerable challenges in traditional sectors.

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