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Private Sector Loses Jobs in September, ADP Says; Shutdown Leaves NonFarm Payrolls Report in Limbo

BY MT Newswires | ECONOMIC | 10/01/25 01:06 PM EDT

01:06 PM EDT, 10/01/2025 (MT Newswires) -- Employment in the US private sector fell in September, Automatic Data Processing (ADP) reported Wednesday, while a federal government shutdown left the release of the official jobs report for last month in limbo.

Private jobs decreased by 32,000 last month, ADP reported. The consensus was for a 51,000 increase in a Bloomberg-compiled survey. The number of jobs created in August was revised to show a loss of 3,000 versus a gain of 54,000, according to ADP.

"Despite the strong economic growth we saw in the second quarter, this month's release further validates what we've been seeing in the labor market, that US employers have been cautious with hiring," ADP Chief Economist Nela Richardson said.

US lawmakers failed to make a deal to extend the government's 2025 fiscal year funding Tuesday, shutting key services and halting data releases monitored by Wall Street. On Wednesday, the Senate was once again unable to advance Republicans' stopgap funding bill, news outlets reported. The official September jobs report was scheduled for a Friday release.

The latest ADP data underscores "the reticence of businesses to increase headcount," Oxford Economics Senior Economist Matthew Martin said in remarks e-mailed to MT Newswires. "The case for an additional (25-basis-point interest) rate cut in October is growing, particularly given a potential lack of labor market data should the shutdown be prolonged."

The services sector lost 28,000 jobs last month, led by a 19,000 decline in leisure and hospitality, according to ADP data. The goods-producing industry saw a decline of 3,000 jobs, with construction and manufacturing posting losses.

Annual wage growth for job changers eased to 6.6% from 7.1% sequentially, while the pay increase for job stayers was little changed at 4.5%, the report showed.

On Tuesday, government data showed that US job openings rose in August, while hiring eased.

Price: 289.86, Change: -3.64, Percent Change: -1.24

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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