WASHINGTON >> U.S. private payrolls dropped by the most in 2-1/2 years in September, the ADP National Employment report showed today, but this is not a true picture of the labor market, which has stagnated as businesses remain cautious about hiring.

With the release of the closely watched official employment report for September delayed after a lapse in funding forced the government to shut down at midnight on Tuesday, the ADP report could, however, attract more attention than usual from investors seeking fresh clues on the labor market’s health.

Tepid demand for workers, blamed by economists on a lagging drag from uncertainty stemming from tariffs on imports as well as the rise of artificial intelligence, is impeding hiring.

Immigration raids have also reduced labor supply, creating wh

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