In a surprising turn, companies cut 32,000 jobs last month, the largest drop in two-and-a-half years, pointing to a weakening labor market. Economists had expected a 45,000 increase, making this decline a stark contrast. The Bureau of Labor Statistics’ usual report on payrolls will not be released due to funding issues in Washington, D.C.

The August payrolls figure has been revised from a 54,000 increase to a loss of 3,000 jobs. Despite strong economic growth, U.S. employers remain cautious about hiring, according to ADP’s chief economist. The Fed’s interest rate cut was partially influenced by job market weakness, and further signs of a cooldown are being closely monitored.

Job losses were seen in various sectors like leisure, hospitality, business services, finance, construction, and manufacturing. Education and health services were among the few areas that saw job gains. Year-on-year pay increased for those who stayed in their jobs, with a slight dip for job changers compared to the previous month.

Private sector data is considered a limited view of the economy by UBS chief economist, with government data providing a broader perspective. The absence of official data could impact the accuracy of economic modeling. President Trump’s actions at the BLS have added to the uncertainty, leading to increased reliance on alternative datasets like ADP.

Read more at Yahoo Finance: Private sector jobs fall, says ADP, as official data dries up