The US labor market faces a cold start in 2026, with weakening hiring momentum

BlockBeats News, January 7 — US companies added a modest number of jobs in December, indicating that growth momentum will remain sluggish after 2026. According to data from the ADP Research Institute, after a decline last month, private sector employment increased by 41,000, falling short of expectations.

ADP Chief Economist Nela Richardson stated in a release, “Although large employers are contracting, small organizations are recovering from layoffs in November through active hiring at the end of the year.” The report further confirms that the labor market is gradually cooling but not deteriorating rapidly. Recent hiring activity has been lukewarm, and the unemployment rate has risen, which not only affects economists’ forecasts for the new year but also influences Americans’ outlook on employment prospects. (Jin10)