U.S. Private Sector Loses 32,000 Jobs in September Amid Hiring Slowdown
ADP report shows job cuts in hospitality, finance, and manufacturing as employers remain cautious despite strong economic growth.
The U.S. private sector unexpectedly lost 32,000 jobs in September, according to new payroll data released Wednesday by ADP, challenging economists’ forecasts of employment growth.
The report highlighted that the largest job cuts occurred in leisure and hospitality, professional services, and financial activities. Employment also declined in trade, transportation, utilities, and manufacturing, signaling a broad-based hiring slowdown.
“Despite the strong economic growth we saw in the second quarter, this month’s data confirms what we’ve been observing in the labor market—employers in the U.S. are cautious about hiring,” said Nela Richardson, ADP’s chief economist.
Wage Growth Holds Steady
Wages increased 4.5% year-over-year, a pace that ADP noted has remained relatively unchanged. However, pay raises for job switchers slowed to 6.6% in September, down from 7.1% in August, reflecting reduced labor market competitiveness.
Revised Data Adds to Losses
As part of its annual adjustment based on 2024 employment and wage statistics, ADP revised prior benchmarks, showing an additional 43,000 job losses in September compared to earlier estimates.
Policy Concerns and Federal Reserve Response
The overall job losses come at a sensitive time for U.S. policymakers. The Federal Reserve cut interest rates for the first time in 2025 last month, citing concerns about weakening employment trends. Economists caution, however, that ADP’s data often diverges from official government employment reports, which are closely watched by markets.
While the broader economy remains resilient, the slowdown in hiring underscores persistent challenges for the labor market heading into late 2025. Employers appear reluctant to expand staff even as consumer spending and economic output remain strong.
