U.S. hiring rose modestly in December, signaling sluggish growth momentum heading into 2026. According to data released Wednesday by the ADP Research Institute, private-sector employment increased by 41,000 after a decline the previous month, falling short of expectations. Job growth was led primarily by the education and health services sector, as well as the leisure and hospitality sector. Employment in professional services and manufacturing, however, declined. “While large employers are scaling back, small businesses rebounded from November’s layoffs by actively hiring at the end of the year,” said Nela Richardson, chief economist at ADP, in a statement. The report further confirms that the labor market is gradually cooling off, though it is not deteriorating rapidly. Recent hiring activity has been lackluster, and the unemployment rate has risen, affecting not only economists’ forecasts for the new year but also Americans’ own views on job prospects.