Bad news for the U.S. economy: This is the latest jobs report published before the government shutdown

The United States got some unexpected news on Wednesday, according to a ADP Research report US private companies shed an estimated 32,000 jobs in September instead of gaining over 50,000 as had been forecast. This is the largest drop for the labor market since March 2023.

Furthermore, the payroll processing company revised their August number down from an estimated 54,000 increase to a 3,000 loss in jobs. This marks the second month of weak jobs data reported by ADP and three out of the past four have now seen private payroll losses.

“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 U.S. employers have been cautious with hiring,” said ADP chief economist Nela Richardson in a statement.

Only large businesses adding jobs

The majority of job losses were in businesses with less that 50 employees. Those with less than 20 eliminated 19,000 jobs while companies with between 20 and 49 employees cut 21,000 payrolls.

Mid-sized companies, those with from 50 to 249 employees and 250 to 499, offloaded 11,000 and 9,000 payrolls, respectively. Only large companies saw gains, adding 33,000 payrolls.

US Treasuries jump in response to weak job data

This jobs data will most likely be the last to be released this week due to the federal government shutdown. With lawmakers on Capitol Hill unable to come to an agreement on a stopgap bill to keep the federal government funded, employees at the Bureau of Labor Statistics, which was due to publish the official government weekly jobs report on Friday, have been sent home.

Without government data, traders will have to rely on private data to guide them on what the Federal Reserve will do with interest rates when policymakers meet at the end of the month. ADP’s report sent US Treasuries surging reports Bloomberg as investors increase their bets that the Fed will cut interest rates at the next meeting.

Get your game on! Whether you’re into NFL touchdowns, NBA buzzer-beaters, world-class soccer goals, or MLB home runs, our app has it all.

Dive into live coverage, expert insights, breaking news, exclusive videos, and more – plus, stay updated on the latest in current affairs and entertainment. Download now for all-access coverage, right at your fingertips – anytime, anywhere.