Private Sector Sheds 32,000 Jobs in September Amid Weakening Labor Market

On October 1, 2025, a report from ADP revealed that private companies' payrolls dropped by a seasonally adjusted 32,000 jobs in September. This figure represented the largest decline since March 2023. The report also revised its August numbers, changing from an increase of 54,000 jobs to a drop of 3,000.

Nela Richardson, the chief economist at ADP, stated that the drops were an indication of a weakening labor market. "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," Richardson said.

The ADP report showed a 28,000 overall drop in service-related jobs, including significant declines in leisure/hospitality (19,000), professional/business services (13,000), financial activities (9,000), trade/transportation/utilities (7,000), and other services (16,000). However, there was a rise in education and health services jobs (33,000) and in information jobs (3,000). In the goods-producing industries, there was an overall loss of 3,000 jobs, with declines in construction (5,000) and manufacturing (2,000), but an increase in natural resources and mining (4,000).