AI pushes some to skilled trade work
The ADP National Employment Report, a measure of private employment in the U.S., said on Wednesday that payrolls at private employers declined by 32,000 jobs last month, signaling the labor market continued to face headwinds in September.
More attention may be given to the ADP data this week because the government's monthly jobs report, scheduled for release on Friday, Oct. 3, could be delayed due to the government shutdown that began today, according to Oxford Economics.
The ADP report, which is based on payroll data from more than 26 million U.S. employees, comes as the U.S. economy expanded at a stronger-than-expected rate in the second quarter. At the same time, the government's monthly jobs reports this summer have shown disappointing job growth as some businesses are holding off on hiring amid economic challenges such as tariffs and artificial intelligence.
"This is the latest data point signaling a fairly dramatic softening in labor momentum as companies aggressively dial back on hiring," Adam Crisafulli, head of investment advisory firm Vital Knowledge, said in a report.
The government jobs report, issued by the Labor Department's Bureau of Labor Statistics, is expected to show that employers hired 50,000 people last month, according to economists polled by financial data company FactSet. Given the government shutdown, it's unclear whether the report will be issued Friday, or, if not, how long it might be delayed.
The ADP report differs from the BLS monthly jobs report in that it only tracks employment at private businesses, while the government data covers both private employers and public sector hiring at local, state and federal levels.
Most of the weakness last month was due to small and mid-sized businesses shedding jobs, while large employers — those with more than 500 workers — added 33,000 employees in September, ADP said.
ADP also revised its August numbers downward to show that private businesses shed 3,000 jobs, versus its earlier estimate that companies had hired 54,000 employees that month.
"You've heard me many times be critical of tariffs and I have to point my finger at them as the main culprit for the labor market weakness, particularly with small and medium-sized businesses," economist Peter Boockvar said in The Boock Report on Wednesday. "The scattershot approach to using tariffs rather than something strategic and selective has battered many small businesses that just do not have the financial flexibility and sourcing capabilities that larger companies do."
Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.
