U.S. Private Payrolls Decline Amid Government Shutdown
U.S. private payrolls decreased by 32,000 in September, contrasting expectations for a rise. Delays in government data releases due to a shutdown heighten focus on private reports like ADP. Economists anticipate that a stagnant labor market may prompt the Federal Reserve to further cut interest rates.
- Country:
- United States
September saw a notable drop in U.S. private payrolls, as reported by ADP. The employment report indicated a decline of 32,000 jobs, contrasting with economists' forecasts of a 50,000 increase. This follows a revised 3,000 job drop in August.
The situation draws investor attention, especially as the government's broader labor report is delayed by a shutdown. The U.S. government's funding lapse has halted several key economic data releases expected this week.
Bill Adams, Comerica Bank's chief economist, noted the potential market impact of suspension in statistical releases. Financial markets might turn to private data sources like ADP for insights. Economists predict that the Federal Reserve might further cut interest rates to stimulate a slowing labor market.
(With inputs from agencies.)
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