Watchdog on Wall Street with Chris Markowski podcast

Weak ADP Jobs Report Signals a Slowing Economy—and Markets Don’t Know How to React

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December’s ADP jobs report came in far weaker than expected, with just 41,000 jobs added—raising serious concerns about the true state of the U.S. labor market. Nearly all the growth came from services like education and healthcare, fueled largely by government spending, while manufacturing slipped further into negative territory. Small and mid-sized businesses showed only modest hiring, and large firms barely moved at all.
As pundits cheer trade deficit headlines, this report suggests a more troubling reality: Americans may simply be spending less, and companies are signaling they’re not planning to hire much in 2026. With inflation still sticky, jobs weakening, and even the Fed questioning the reliability of government data, markets are left stuck in a “good news is bad news” loop—desperate for rate cuts that may not come.
The bottom line: the jobs picture in the U.S. is deteriorating, uncertainty is rising, and the risk of a recession is real. Markets will sort themselves out—but the country needs a stronger, more stable economic foundation, not daily chaos and misleading headlines.

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