US Employment Shows Sharp Contraction: Goldman Sachs Reports 50,000 Job Losses in October

Goldman Sachs raised fresh concerns about the health of America’s labor market, projecting a significant contraction in October employment figures. The investment bank’s analysis indicates that non-farm payrolls declined by approximately 50,000, representing the steepest monthly drop since the pandemic-era downturn of 2020.

According to the bank’s employment growth tracker, momentum has decelerated substantially from the previous month. September saw growth readings of 85,000, which compressed to 50,000 in the latest assessment, signaling an abrupt slowdown in job creation. This deterioration reflects dual pressures: administrative workforce reductions tied to the Trump administration’s “deferred departure initiative” accounted for roughly 100,000 additional job cuts beyond the baseline decline.

The deteriorating picture extends beyond headline figures. Goldman Sachs highlighted that layoff activity is accelerating across the economy, while traditional labor market health indicators are flashing warning signs. The combination of policy-driven workforce adjustments and rising separation rates suggests the employment landscape faces meaningful headwinds entering the final quarter of the year.

These projections underscore growing anxiety about economic resilience, as the 50,000 job loss would mark a notable inflection point for the world’s largest economy just months after labor market conditions were characterized as relatively robust.