Payrolls at U.S. companies unexpectedly dropped in September, due at least in part to issues with data analysis.

Private-sector payrolls decreased by 32,000 after a revised 3,000 decline a month earlier, according to ADP Research data released Wednesday. The figure was below all estimates in a Bloomberg survey of economists.

ADP periodically recalibrates their figures based on an expansive series from the Bureau of Labor Statistics that includes state unemployment insurance tax records and covers nearly all US jobs. The adjustment resulted in a reduction of 43,000 jobs in September compared to pre-benchmarked data, the report said.

While that may overstate the weakness in the labor market, ADP said it didn’t alter the recent hiring trend, and job creation continued to lose momentum across most sectors.

“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 Nela Richardson, chief economist at ADP.

Trump canceling energy grants

The Trump administration is cancelling $7.6 billion in grants that supported hundreds of clean energy projects in 16 states, all of which voted for Democrat Kamala Harris in last year’s presidential election.

These cuts are likely to affect battery plants, hydrogen technology projects, upgrades to the electric grid and carbon-capture efforts, among many others, according to the environmental nonprofit Natural Resources Defense Council.

The cuts include $1.2 billion for California’s hydrogen hub that is aimed at accelerating hydrogen technology and production, according to Gov. Gavin Newsom’s office. The private sector has committed $10 billion for the hydrogen hub, Newsom’s office said, adding that canceling the Alliance for Renewable Clean Hydrogen Energy Systems threatens over 200,000 jobs.

The Energy Department said in a statement Thursday that 223 projects were terminated after a review determined they did not adequately advance the nation’s energy needs or were not economically viable.

Shutdown could affect state jobs

California has seen its shareof federal jobs disappear in 2025. With a government shutdown in effect, most of the federal workers still employed won’t be getting paid.

In August, California had 248,000 federal government jobs, according to seasonally adjusted numbers that Beacon Economics derived from monthly jobs reports from the state Employment Development Department. August is the most recent month for which nonfarm payroll figures are available for California.

Over the first eight months of 2025, California lost 5,700 federal government jobs, Beacon and EDD estimates show.

Federal job losses in the Bay Area are more severe than what is happening statewide.

So far in 2025, California’s federal workforce has declined 2.2%. The Bay Area, however, has experienced a 4.4% drop in its federal government job totals.

President Donald Trump last week said he was weighing slashing “thousands” of federal jobs as the White House looks to ratchet up pressure on Democrats to end a government shutdown that has entered its second day. White House press secretary Karoline Leavitt said Thursday that the “entire team at the White House” was working to identify possible cuts.

Tesla sales surge as EV rebates end

Tesla reported a surprise record quarter of vehicle sales as US consumers accelerated electric-car purchases before federal tax credits expired.

The company delivered 497,099 vehicles worldwide, 7.4% more than a year ago. While that total far exceeds the roughly 439,600 average analyst estimate compiled by Bloomberg, Tesla’s shares slumped Thursday following a record monthly gain in market capitalization.

A rush to take advantage of a $7,500 tax credit for EV purchases delivered a temporary boost to Tesla’s core automotive business, which languished for several quarters under the weight of an aging lineup and rising competition.

The company also faced a consumer backlash to Chief Executive Officer Elon Musk’s politics as he worked closely with President Donald Trump early this year.

Compiled from Bloomberg, Associated Press and staff reports.