NextFin news, On Monday, October 6, 2025, Moody’s Chief Economist Mark Zandi warned that the US labor market experienced minimal job growth in September 2025, citing private sector data amid the ongoing suspension of official government labor statistics caused by a federal shutdown.
Zandi emphasized that the lack of Bureau of Labor Statistics (BLS) data is a "serious problem" for accurately assessing the health of the labor market. Despite this, private payroll data indicates that job creation was nearly stagnant last month, with any gains concentrated in just three wealthy states.
The government shutdown, which began in late September 2025, has halted the release of official employment reports, forcing economists and analysts to rely on alternative data sources. Moody’s analysis suggests that smaller companies are particularly affected, showing signs of weakening employment trends.
According to Zandi, the sputtering job market raises concerns about the broader economic outlook, as employment growth is a key indicator of economic strength. The limited job gains contrast with previous months of steady expansion, signaling potential challenges ahead for the US economy.
While the official BLS data remains unavailable, private data providers have reported subdued hiring activity, reinforcing Moody’s cautious stance. Zandi’s comments underscore the importance of restoring government data operations to provide transparent and timely labor market information.
The labor market’s performance in September 2025 will be closely watched by policymakers, investors, and businesses as they navigate uncertainty caused by the data blackout and assess the implications for economic policy and growth.
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