U.S. private sector hiring continued to be choppy through the end of 2025 with both structural changes like demographics and AI integration and cyclical factors at play, ADP chief economist Nela Richardson said Wednesday. Employers added 41,000 jobs in December, recovering from a 29,000 loss in November, with education and health services continuing to dominate, according to ADP research.
"It's still a labor market that's trying to find its footing, and it's being buffeted by both tailwinds and headwinds," Richardson said. "That makes it hard for policymakers, frankly."
Overall the latest ADP data are unlikely to shift Fed views, she added. "We're still seeing a slowdown in monthly job gains, and employment has been choppy, but the labor market isn't falling off a cliff." (See: MNI: Fed Biased To Ease With Focus On Jobs - Ex-Officials)