ADP says private sector sheds jobs as government shutdown halts data

Core Insights - The private sector experienced a significant job loss of 32,000 in the last month, marking the largest decline in two-and-a-half years, contrasting sharply with economists' expectations of a 45,000 job increase [1][2] - The ADP data has gained importance due to the delay in the Bureau of Labor Statistics' nonfarm payrolls report, which is typically a key indicator of the job market [2][5] - Job losses were widespread across various industries, including leisure and hospitality, business services, and finance, while education and health services were among the few sectors that added jobs [4] Employment Trends - The job market is showing signs of caution from U.S. employers, as indicated by the recent job losses despite strong economic growth in the second quarter [3] - Year-on-year pay growth for employees who remained in their jobs increased by 4.5%, while those who changed jobs saw a decrease in pay growth to 6.6% from 7.1% [4] Economic Context - The Federal Reserve's decision to cut interest rates was partly influenced by the observed weakness in the job market, with officials monitoring for further signs of a slowdown [3] - The current situation is complicated by the government shutdown, which has left the Bureau of Labor Statistics with minimal staffing, leading to increased reliance on private sector data like ADP's [5]