US Private Sector Sheds 32,000 Jobs in September Amid Shutdown
The US private sector cut 32,000 jobs in September, according to the ADP National Employment Report, missing economists' expectations. A government shutdown has halted official nonfarm payrolls data.
Overview
- The US private sector experienced a net loss of 32,000 jobs in September, as reported by the ADP National Employment Report, indicating a significant contraction in employment.
- Small and mid-sized businesses were primarily responsible for these job cuts, even as large employers managed to add 33,000 employees during the month.
- This September job loss fell considerably short of economists' predictions, who had anticipated an addition of 50,000 jobs to the private sector.
- The ADP report's findings contrast with expectations that official government data, currently unavailable, would show an increase of 50,000 positions.
- A partial government shutdown has temporarily halted the release of crucial official jobless claims and September nonfarm payrolls data, impacting economic transparency.
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Analysis
Center-leaning sources frame this story by emphasizing a weakening labor market, using terms like "headwinds" and "disappointing job growth." They highlight job cuts, particularly among small and mid-sized businesses, and underscore the downward revision of previous data. The collective editorial choices prioritize a narrative of economic challenges and a "softening" labor momentum.
"The ADP report shows private employers cut 32,000 jobs in September as labor market weakens."
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FAQ
The job losses were driven mainly by small and mid-sized businesses cutting jobs, while large employers added jobs, along with a data recalibration in ADP's estimates that lowered overall job counts. Other factors include economic caution among employers and impacts from sector-specific contractions such as leisure, hospitality, and financial activities.
The partial government shutdown has halted the release of official nonfarm payrolls data and jobless claims, making the ADP National Employment Report one of the few available sources for employment data in September 2025.
The most significant job losses occurred in leisure and hospitality, professional and business services, financial activities, trade, transportation and utilities, construction, and manufacturing sectors, whereas education and health services saw gains.
The 32,000 job loss in private payrolls was contrary to economists' expectations of a 50,000 job gain and marks the first consecutive monthly decline since 2020, representing the steepest decline since March 2023.
Pay growth for workers who stayed in their jobs remained relatively steady at 4.5%, while pay gains for those who changed jobs slowed to 6.6% from 7.1%, indicating some wage growth moderation despite employment cuts.
History
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