WASHINGTON, Oct 1, 2025 (BSS/AFP) - The US private sector lost jobs in September, data from payroll firm ADP showed Wednesday, despite analysts' expectations of employment growth.

Private sector employment shed 32,000 jobs last month, with the biggest losses seen in sectors like leisure and hospitality and professional services, as well as in financial activities.

Hiring in trade, transportation and utilities, as well as manufacturing, also contracted, data showed.

"Despite the strong economic growth we saw in the second quarter, this month's release further validates what we've been seeing in the labor market, that US employers have been cautious with hiring," said ADP chief economist Nela Richardson in a statement.

Salaries were up 4.5 percent year-on-year, and ADP said this rate was "little changed."

Pay gains for those who changed jobs cooled to 6.6 percent in September from 7.1 percent in August, ADP said.

The overall reduction in jobs came as ADP conducted an annual preliminary adjustment of its figures based on 2024 results of the quarterly census of employment and wages, it said.

This resulted in a loss of 43,000 jobs in September compared with pre-benchmarked data, ADP added.

US policymakers have been wary of weakening in the key jobs market, with the central bank cutting interest rates for the first time in 2025 last month over employment concerns.

But economists have also warned in the past that ADP data can diverge from official figures.