U.S. Private Sector Sees Unexpected Job Losses in September, ADP Reports

Feature and Cover U S Private Sector Sees Unexpected Job Losses in September ADP Reports

The U.S. private sector experienced an unexpected job loss of 32,000 positions in September 2025, the largest decline since March 2023, according to the latest ADP report.

Washington, D.C. — The U.S. private sector saw an unexpected decline in employment in September 2025, shedding 32,000 jobs. This marks the largest drop in employment since March 2023, as analysts had anticipated a modest increase of 50,000 jobs for the month.

Small and medium-sized businesses were particularly affected, collectively losing 40,000 positions. In contrast, large firms managed to add 33,000 jobs during the same period. This divergence highlights the ongoing challenges faced by smaller enterprises in the current economic climate.

Key sectors that experienced job losses included leisure and hospitality, professional services, and financial activities. Conversely, the education and health services sectors saw modest gains, indicating a mixed performance across different areas of the economy.

Despite the overall decline in employment, wage growth remained robust. Job switchers, or those changing jobs, experienced a 6.6% increase in wages, the highest rate observed in a year. This suggests that while the job market may be contracting in certain sectors, competition for talent remains strong, driving up wages for those willing to make a change.

The report comes at a time when the U.S. government is facing a shutdown, which has delayed the release of official jobs data from the Bureau of Labor Statistics. As a result, this ADP report serves as one of the few available indicators of the labor market’s current state.

Economists have cautioned that while the data from the ADP report provides valuable insights, it may not fully capture the broader economic picture. The complexities of the labor market, influenced by various external factors, mean that a single report may not provide a complete understanding of employment trends.

As the economy continues to navigate these challenges, stakeholders will be closely monitoring future reports for signs of recovery or further decline in the job market.

Source: Original article

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