ADP Employment Change reveals continued slowdown in private-sector hiring

Ghiles Guezout FXStreet

The ADP Employment Change 4-week average came in at 7,750 in the period ending January 3, 2026, down slightly from 8,000 in the previous period.

Job gains edged down for a third consecutive week, signaling a gradual loss of momentum in private-sector hiring.

Market reaction

The US Dollar Index (DXY) remains on the defensive on Tuesday, down 0.45% at 96.60. Meanwhile, EUR/USD gains 0.40% to 1.1930, reaching its highest level since June 2021.

Economic Indicator

ADP Employment Change 4-week average

The preliminary ADP weekly estimate, released by Automatic Data Processing Inc, provides a four-week moving average of the latest total private-employment change in the US. Generally, a rise in the indicator has positive implications for consumer spending and stimulates economic growth. Therefore, a high reading is traditionally seen as bullish for the US Dollar (USD), while a low reading is seen as bearish.

Why it matters to traders?

The ADP weekly report provides the change in private sector employment, offering the most current view of the labor market based on ADP's fine-grained, high-frequency data. Traders often consider employment figures from ADP, America's largest payrolls provider, as the harbringer of the Bureau of Labor Statistics release of Nonfarm Payrolls.

Author

Ghiles Guezout

FXStreet

Ghiles Guezout is a Market Analyst with a strong background in stock market investments, trading, and cryptocurrencies. He combines fundamental and technical analysis skills to identify market opportunities.

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