The U.S. labor market is showing growing signs of stress as layoffs accelerate among private companies.
Payroll processor ADP reported that private firms lost an average of 13,500 jobs per week over the past four weeks.
This marks a sharp increase from the previous week, when job losses averaged 2,500 per week.
The report highlights an economy facing mounting challenges amid limited official data releases due to the government shutdown.
Federal agencies, including the Bureau of Labor Statistics and Bureau of Economic Analysis, have adjusted their reporting schedules.
However, key indicators such as the monthly nonfarm payrolls count are now not expected until December.
Alternative sources like ADP’s data have therefore become essential for gauging the economic picture.
Federal Reserve policymakers will face a limited information set when they meet on December 9–10.
Several officials have recently suggested that additional interest rate cuts may be necessary.
Markets have responded, adjusting expectations for a potential reduction in interest rates at the upcoming meeting.
Jan Hatzius, chief economist at Goldman Sachs, noted that the December jobs report and CPI release leave little to disrupt a possible cut.
He also highlighted that preliminary indicators suggest renewed job losses in October.
This comes despite the BLS reporting stronger-than-expected payroll growth of 119,000 in September.
Goldman Sachs expects the Federal Reserve to implement a rate cut in December, followed by two additional quarter-point reductions in 2026.
Analysts say the unfolding trend underscores uncertainty in the labor market as the economy navigates a period of slower growth.
Investors and policymakers will be closely watching upcoming data releases for signs of stability or further deterioration.
The ADP report signals that private payrolls may be an early warning of broader labor market weakness.
The pace and scale of job losses could influence monetary policy decisions in the coming months.
