Companies in the U.S. cut 32,000 jobs in September, according to payroll processor ADP, in a troubling sign that the labor market is weakening. Wall Street had expected a gain of 45,000 jobs.
The decline was concentrated in small businesses. Firms with 20–49 employees lost 21,000 jobs, while those with fewer than 19 workers shed 19,000. Larger companies with more than 500 workers were the only group to record job growth.
Private-sector US payrolls decreased by 32,000 last month after a revised 3,000 decline a month earlier, according to ADP Research data released Wednesday.
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ADP noted the losses reflected downward revisions to past Bureau of Labor Statistics data, but the overall trend remains clear: hiring momentum is slowing across most sectors. Pay gains for job-changers also eased, dropping to 6.6 percent from 7.1 percent in August.
The dollar skimmed one-week lows against major currencies on Wednesday as a U.S. government shutdown unsettled markets and threatened to delay key jobs data, seen as crucial for Federal Reserve policy decisions. https://t.co/9vIAkVLKRw
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Industries hit hardest included leisure and hospitality, professional services, financial activities, and trade and transportation. With the federal government shut down, the ADP release may be the only labor market data available this week.
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