US Private Sector Jobs Decline Deepens Amid Government Shutdown

The Philippine manufacturing sector contracted in September, with the purchasing managers' index (PMI) falling below the 50 threshold for the first time since April, signaling a decline in output and new orders, primarily due to weak domestic demand and weather disruptions. In the United States, private-sector employment shrank by 32,000 jobs in September, marking the largest job loss in over two years amid an ongoing government shutdown that has delayed official labor market data releases. ADP revised August's employment figures downward, indicating a broader and sustained slowdown in hiring momentum, especially impacting small businesses and sectors like leisure and hospitality. This contraction in the U.S. labor market has raised concerns about economic health and increased expectations for Federal Reserve interest rate cuts. The government shutdown complicates analysis of the labor market, as it prevents the release of official data from the Bureau of Labor Statistics, leaving investors and policymakers to rely on private reports like ADP's. These developments collectively suggest cautious economic conditions both in the Philippines' manufacturing sector and the U.S. labor market during this period.