US private employers shed 32,000 jobs in September, the latest sign that the labor market is in a serious pullback.

That’s according to data out Wednesday from payroll processor ADP, which was far below economists’ expectations of 51,000 jobs added. Private payrolls for August were also revised sharply lower to a loss of 3,000, after data initially showed a gain of 54,000.

“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,” ADP chief economist Nela Richardson said in a statement.

Because the US jobs report for September is likely to be delayed due to the government shutdown, private payroll data is in greater focus among economists and market watchers.

Recent government data releases have suggested a job market in stasis. The pace of new positions being added to the economy has slowed dramatically, with the country even losing 13,000 positions in June for the first time since 2020, according to the Bureau of Labor Statistics. ADP data for that month also showed a drop in payrolls among private employers, though by a larger number: 23,000.

The unemployment rate, meanwhile, hit 4.3% in August, its highest level since October 2021. And, while the number of available positions increased slightly that month, according to data released by the government Tuesday, the hiring rate and level of workers quitting their jobs declined as Americans clung to their positions and employers remained hesitant to add staff in an economy defined by uncertainty.

Emma Ockerman is a reporter covering the economy and labor for Yahoo Finance. You can reach her at emma.ockerman@yahooinc.com.