ADP data showed US private employers shed 32,000 jobs in September, a far cry from expectations of a 51,000 gain. August’s figure was also revised down from a 54,000 gain to a 3,000 job loss, signaling continued weakness in the labor market.
ADP chief economist Nela Richardson said the latest figures confirm that employers are increasingly cautious about hiring despite strong second-quarter economic growth. The report is gaining more attention because the government’s official jobs data is expected to be delayed due to the federal government shutdown.
The labor market’s weakening trend has been visible since the summer. The country shed 13,000 jobs in June, the first time since 2020, while ADP reported a larger decline of 23,000 for the same month.
The unemployment rate also rose to 4.3% in August, the highest since 2021. While there was a slight increase in job vacancies, the rate of hiring and job losses continued to decline.
This situation reflects a cautious labor market, with employers reluctant to add staff in an economic environment plagued by uncertainty, thus presenting a challenge to the Federal Reserve in assessing the direction of monetary policy.
