U.S. private sector employment expands in Q4 2025

The U.S. private sector employment market showed signs of expansion in the fourth quarter of 2025, ending two consecutive quarters of net contraction. According to data from the U.S. Bureau of Labor Statistics, total job openings reached 7.838 million, an increase of 363,000 from the previous quarter. Job losses decreased to 7.245 million, resulting in a net gain of 593,000 jobs.

This recovery was primarily driven by existing companies expanding their operations, which accounted for nearly 80% of new positions. Growth was observed across various business sizes, with small businesses (1-49 employees), medium enterprises (50-249 employees), and large corporations (250+ employees) all reporting net gains.

Sector performance was mixed; the service industry was the primary driver of growth, contributing a net 588,000 jobs. While manufacturing and construction saw slight shifts from decline to modest growth, the goods production sector remained nearly stagnant. Geographically, the recovery was widespread, with 42 states and several territories reporting more job gains than losses.