January 2026 Revelio Public Labor Statistics Show Job Losses and Slowing Hiring—Impacting M&A, Private Sales, and Strategic Acquisitions
Dallas, TX — February 5, 2026 — Keymark Advisory, the strategic M&A and corporate advisory arm of Keymark Advisory LLC, is responding to the latest Revelio Public Labor Statistics (RPLS) release, which reported a loss of 13,000 U.S. jobs in January 2026, alongside declining hiring and attrition rates and reduced job postings across nearly all industries.
The report suggests the labor market is entering a “low-hire, low-fire” phase, signaling a broader economic cooling that is likely to impact the pace and nature of business transactions in the months ahead.
How This Affects Business Transactions
A cooling labor market typically signals a shift from growth-driven acquisitions to value-driven transactions. When hiring slows and job postings decline, companies often respond by tightening budgets, slowing expansion, and increasing operational discipline. For M&A activity, this tends to create:
- More seller motivation as owners seek liquidity before conditions worsen
- More buyer selectivity as investors demand higher certainty and performance stability
- A rise in distressed or opportunistic transactions where underperforming businesses face pressure
- Increased emphasis on operational improvements and turnaround-driven acquisitions
As job losses were concentrated in Retail, Leisure & Hospitality, and Public Administration, the market is likely to see transaction activity shift toward industries with stable cash flow and resilient demand, while risk increases for labor-intensive, consumer-facing sectors.
Top 3 Industries Poised for Strategic Acquisition
Based on the RPLS data and market dynamics, Keymark Advisory believes the following industries present the strongest acquisition opportunities:
1. Information Technology / Software
Employment gains and strong demand for specialized roles suggest continued resilience. Buyers can acquire businesses that are high-margin, scalable, and less labor-dependent, with long-term growth potential.
2. Financial Services
Positive employment trends indicate stability and continued demand for financial products, advisory services, and fintech innovation. This sector benefits from recurring revenue models and strong regulatory barriers to entry.
3. Healthcare & Education Services
With employment growth and long-term demographic tailwinds, healthcare and education services remain defensive and cash-flow stable, even during broader economic slowdowns.
3 Industries Likely to Suffer
These industries showed the most significant weakness in January and may experience further pressure as hiring slows:
1. Retail Trade
Major employment declines and continued pressure on brick-and-mortar retail indicate increasing consolidation, store closures, and margin compression.
2. Leisure & Hospitality
The industry remains vulnerable to shifting consumer spending patterns and rising labor costs, making profitability harder to sustain without operational overhaul.
3. Public Administration
Government and municipal budget constraints often translate into spending freezes and reduced staffing, impacting vendors and service providers dependent on public sector contracts.
One Industry Where Roll-Ups Make Sense
Retail but Only in Specific Segments
While retail is under pressure, roll-ups can be viable in fragmented segments with clear operational improvement opportunities, such as:
- Specialty retail
- Auto parts and service chains
- Franchise-based retail models
- Consumer services with recurring revenue
These sectors can be consolidated through scale, improved operations, and centralized overhead.
If the Above Holds True, Who’s Winning, Who’s Losing and How Do You Win?
Winning:
- Businesses with stable recurring revenue
- Companies with strong margins and operational discipline
- Owners who can demonstrate performance resilience and forecastable cash flow
Losing:
- Labor-intensive businesses with thin margins
- Consumer-facing companies without differentiation or pricing power
- Owners who wait too long to address declining performance or postpone strategic decisions
How to Win:
- Buy in industries with demonstrated stability and growth
- Focus on operational improvements rather than purely financial engineering
- Acquire businesses with strong cash flow and defensible market positions
- Avoid overpaying in sectors where labor and consumer demand are weakening
Does this signal the arrival of new industry or opportunity within labor-intensive, consumer facing companies once approached from an informed, strategic positioning?
