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03 October
Jobs in service sector shrink for fourth month on tariff uncertainty, lack of qualified workers

Service sector stalls while price pressures intensify, putting Fed in a tough spot

Odilia Kelly serves meals at the LifeNet4Families Community Cafe.
The report also shows signs of rising inflation, highlighting the dilemma for the Federal Reserve. Photo: Joe Raedle/Getty Images

The Institute for Supply Management said on Friday that employment contracted in the service sector for the fourth straight month in September.

The service sector, which employs most Americans, has been more immune to tariffs than the manufacturing sector. But service companies are now also pausing hiring.