#ADPWatch The latest ADP National Employment Report, released on February 4, 2026, paints a sobering picture of a cooling U.S. labor market. Private sector employment increased by a lackluster 22,000 jobs in January, falling significantly short of economist expectations of approximately 45,000. This slowdown highlights a continued deceleration in hiring momentum as the country enters the new year, following a 2025 that saw job creation nearly halved compared to the previous year. The report serves as a critical temperature check for the economy, especially given the recent four-day government shutdown that has delayed official federal labor data. The internal data reveals an uneven economic landscape. While the education and health services sectors remained a bright spot, adding a robust 74,000 positions, white-collar industries and manufacturing faced significant headwinds. Professional and business services saw a steep decline of 57,000 jobs, marking one of the sharpest drops in recent months. Despite the stagnation in hiring, wage growth has remained relatively firm, with annual pay for job-stayers rising by 4.5%. This persistence in wages suggests that while companies are hesitant to bring on new staff, they are fighting to retain their current workforce. For investors and policymakers, the #ADPWatch figures provide vital clues ahead of the delayed government jobs report. The disappointing numbers have already weighed on market sentiment, contributing to the volatility seen in both traditional equities and crypto markets. As the Trump administration moves past the brief shutdown, these lackluster employment figures intensify the pressure on Washington to deliver on promises of economic growth. With a cooling labor market and high-level diplomatic and fiscal deadlines looming, the data underscores a period of high sensitivity for the American economy.