Private jobs data paints grim picture as Fed wrestles with rate cut

While the government shutdown has delayed the release of official employment data, alternative estimates point to a further slowdown in the labor market that could influence the Federal Reserve as it considers its next move.

According to a recent assessment of job market trends from payroll processing firm ADP, America’s private employers shed an average of 11,250 jobs a week in the four weeks ending October 25.

Meanwhile, Goldman Sachs analysts on Monday estimated that nonfarm payrolls shrank by about 50,000 in October, in what would mark the largest monthly loss since 2020.

Why It Matters

Government readings prior to the shutdown already showed the U.S. jobs market to be on shaky footing , and private market estimates suggest that this weakness has carried over into September