Washington, D.C. — The U.S. private sector saw an unexpected decline in employment in September 2025, shedding 32,000 jobs, marking the largest drop since March 2023. Analysts had anticipated a modest increase of 50,000 jobs.
Small and medium-sized businesses were hit hardest, collectively losing 40,000 positions, while large firms added 33,000 jobs. Key sectors experiencing job losses included leisure and hospitality, professional services, and financial activities, while education and health services saw modest gains.
Despite the employment decline, wage growth remained strong, with job switchers seeing a 6.6% increase—the highest in a year. The report comes amid a U.S. government shutdown, which has delayed the official Bureau of Labor Statistics jobs data, making this report one of the few available labor market indicators.
Economists caution that while the data provides valuable insights, it may not fully reflect the broader economic picture.
