'Hiring has dramatically slowed': What private data says about America's job engine

Labor Market Overview - The US job market is currently uncertain due to the ongoing government shutdown, which has resulted in a lack of official job reports and data, leaving investors and officials without clear insights into hiring, wages, or participation rates [1] - Private data indicates that while the labor market is holding up, it is losing momentum as layoffs increase and confidence declines [2] Job Creation and Sectors - According to ADP, private employers added 42,000 jobs in October, marking the first monthly gain since July, but this is significantly lower than earlier in the year. The strongest hiring was observed in trades, transportation, and utilities, while professional services and information sectors experienced job losses [5] - Economic strategist Hardika Singh noted that job creation is not predominantly coming from AI-related industries, which is surprising given the current investor focus on AI as a growth driver [6] Layoffs and Economic Impact - Challenger, Gray & Christmas reported over 153,000 job cuts announced in October, the highest for that month since 2003, attributed to cost-cutting, AI adoption, and overhiring during the pandemic [7] - A total of over 1.1 million layoffs have been announced this year, representing a 44% increase from 2024, with the tech and retail sectors leading these reductions, including significant layoffs from companies like Amazon, Target, and UPS [8]