Data from payroll processor ADP released on Wednesday showed that US private employers eliminated 32,000 jobs in September, while economists were expecting job gains of 51,000.
August numbers were also revised sharply lower to a loss of 3,000, after data initially showed a gain of 54,000.
ADP noted that the decline in private payrolls was led by small- and medium-sized businesses, with leisure and hospitality as well as business services being the hardest hit.
Companies employing more than 500 people, however, added 33,000 positions in September.
Private payroll data was in greater focus Wednesday as the US government shutdown will likely delay the release of September’s employment report, which was scheduled for Friday.
The unemployment rate reached 4.3% in August, its highest level since October 2021.