US Job Cuts Decline in September, Hiring Slows Ahead of NFP

US-based companies reported a decrease in planned job cuts during September, with 43,281 positions eliminated. This figure represents an 18% drop from August and a 20% reduction compared to September of the previous year, marking the lowest monthly total since 2022. Cumulatively, announced layoffs for the first nine months of 2026 are down 39% year-over-year, suggesting a broader trend of fewer job eliminations.

Despite the overall reduction in layoffs, the technology sector continued to be a significant contributor, accounting for 10,799 job cuts in September—a 77% increase from August. This ongoing trend in tech contrasts with the broader market, where other sectors have seen fewer workforce reductions. These employment figures are closely watched by forex and CFD traders as they provide insights into the health of the US economy, influencing the Federal Reserve's monetary policy decisions and, consequently, currency valuations.

However, the latest Challenger report highlighted a notable deceleration in hiring intentions. Employers disclosed plans to add 90,787 workers in September, a 23% decrease from a year ago. This marks the weakest September for announced hiring since 2011. A key concern raised was the absence of the typical early surge in hiring for the upcoming holiday season, which usually provides a boost to employment figures.

Focus on Non-Farm Payrolls (NFP)

• The subdued hiring outlook places increased importance on the forthcoming Non-Farm Payrolls (NFP) report.
• Analysts anticipate an increase of approximately 90,000 payrolls for September.
• The unemployment rate is projected to remain stable at 4.1%.
• This follows the ADP report, which indicated a rise of 90,000 private payrolls, surpassing the 70,000 expectation.

The discrepancy between declining layoffs and weakening hiring intentions presents a mixed picture of the labor market. While fewer individuals are losing their jobs, the reduced demand for new workers could signal a cooling economy. Traders will be scrutinizing the NFP data for further clarity on the labor market's direction and its potential implications for monetary policy.