US companies shed 32,000 jobs in September

US private sector lost jobs unexpectedly in September, raising concerns about the labor market and prompting the Federal Reserve to accelerate interest rate cuts.

The US companies shed 32,000 jobs in September, according to the payroll processing company ADP, a surprising decline that adds to growing concerns about the rapidly weakening labor market.

Investors fear that the government shutdown, which began today, could prolong the shutdown, potentially delaying the release of the Bureau of Labor Statistics' monthly jobs report, scheduled for Friday. This report is closely watched by policymakers for labor market trends.

Wages rose 4.5% year-over-year (YoY) in September, according to the data.

The ADP report indicated that job losses affected most sectors, with leisure and hospitality losing 19,000 jobs, other services losing 16,000, and business and professional services losing 13,000.

In contrast, education and healthcare added 33,000 jobs as schools reopened and health-care employment continued to grow.

“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 US employers have been cautious with hiring," ADP chief economist Nela Richardson said.