The U.S. labor market managed to stumble back into positive territory last month, but just barely. Private employers added 41,000 workers in December, according to ADP's National Employment Report, which reversed November's revised loss of 29,000 jobs. The problem? That's still underwhelming by any reasonable standard, and it came in below the 47,000 jobs economists were expecting.

"Small establishments recovered from November job losses with positive end-of-year hiring, even as large employers pulled back," said Nela Richardson, ADP's chief economist. Translation: Big companies are getting cold feet, and smaller businesses are picking up some of the slack.

Service Jobs Carry the Load

Service-providing industries accounted for basically all of December's job growth, adding 44,000 positions. Education and health services led the pack with 39,000 new jobs, followed by leisure and hospitality with 24,000. Trade, transportation, and utilities chipped in another 11,000.

On the losing side, professional and business services dropped 29,000 jobs, while the information sector cut 12,000. Goods-producing industries lost 3,000 jobs overall, dragged down by a 5,000-job decline in manufacturing, even as construction and natural resources posted modest gains.

Regionally, the South and Northeast did the heavy lifting. The South added 54,000 jobs, while the Northeast gained 40,000, powered by a strong comeback in the Mid-Atlantic. The West was the outlier, shedding 61,000 jobs, with nearly all the damage concentrated in the Pacific region. The Midwest squeezed out a modest 9,000-job increase.

Medium-sized businesses were December's real heroes, adding 34,000 workers. Small establishments added 9,000 jobs, while large employers contributed a measly 2,000, underscoring how cautious bigger companies have become heading into year-end.

Wage pressures aren't going anywhere, either. Pay growth for workers who stayed put held steady at 4.4% year over year. For those who jumped ship, wage gains accelerated to 6.6%, up from 6.3% in November, suggesting job-switchers still have negotiating power.

Markets Shrug Off Tepid Jobs Data

U.S. stock futures nudged higher Wednesday morning as investors processed the mixed labor picture. Contracts tied to the S&P 500 rose 0.1%, while Dow futures gained 0.3%, building on record highs from the previous session. Nasdaq 100 futures hovered near flat.

Moody's Corp. (MCO) led premarket movers, climbing 3% after strong gains earlier in the week. Analysts pointed to expectations for robust debt issuance in 2026 as the catalyst.

In commodities, silver futures took a beating, plunging 4% to $77 after briefly cracking above $80 on Tuesday. Gold futures fell 1.1%, while crude oil barely budged near $57 a barrel.