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U.S. Economy Lost 32,000 Private Sector Jobs In September; Private Sector Employment Declines Two Months In A Row; Shutdown To Delay Release Of September Jobs Report. Aired 9:30-10a ET

Aired October 01, 2025 - 09:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[09:30:00]

KATE BOLDUAN, CNN ANCHOR: And thank you for coming in. I appreciate your time. Sara.

SARA SIDNER, CNN ANCHOR: All right. Thank you to you, Kate.

This morning we got some disappointing private company payroll numbers. Now the market's about to open just a couple of minutes. And you can take a look at what futures are doing now, down a third of a percent. We will see what happens when the market actually opens 10 hours after the federal government shut down. That story and more ahead.

(COMMERCIAL BREAK)

[09:35:00]

SIDNER: All right, we've got some breaking news to share with you. You are looking at video of a partial high rise building collapse in the Bronx. That is live pictures right there. You see the sort of top of that white building. Next to it, you'll see a whole ton of bricks that have just fallen down off of that building.

New York City Mayor Eric Adams tweeted that he has been briefed on the emergency situation and he's telling everyone to avoid that area. Right now, we don't have any reports of any injuries or death, although we have been watching an officer with a K9 unit out there looking around search and rescue looking to see if anyone is under that rubble. But at this point in time, we have no reports of that at this hour. But emergency crews out there very clearly trying to figure out, first of all -- first and foremost, if anyone has been, you know, injured in this, if anyone is in that collapse. We will keep you posted on what happened there in New York.

All right. Also breaking this morning, as you well know, markets opening amid the first government shutdown in nearly seven years. Investors and economists are paying very close attention to what happens on Capitol Hill, as we all are. And the big question is, how long will this shutdown last? Government shutdowns typically do not impact the overall economy in a big way, but this economy appearing to be a little more vulnerable than this time around. Now, we just got numbers this morning, data showing private payrolls plunged in September as policymakers and investors struggle to assess the state of the labor market. Joining me now is Madison Mills, Senior Markets Reporter for Axios.

First, let's talk about these private payroll numbers. How -- how important are they and what do they tell us?

MADISON MILLS, SENIOR MARKETS REPORTER, AXIOS: Well, it's interesting the administration has been making this private data more important because they've been casting doubt on the economic data provided by the Bureau of Labor Statistics. But now the APD data is rhyming with that government data that we've been getting in. It's showing that this economy and the jobs market is really starting to buckle under a lot of the policy uncertainty. This morning, we were supposed to see 50,000 jobs added in that ADP report. That's what Wall Street was expecting.

Instead, it was negative to the tune of 30,000 jobs deleted from the economy. And that's exactly what we've been hearing from government officials, statisticians as well, that these companies have been having a lot of uncertainty.

And a lot of my sources say we're not hiring people if we don't know how much money we're going to have to pay in tariffs going forward, so we're just going to pause for now. And we're seeing that showing up in the hiring data.

SIDNER: We're seeing that. And I do want to mention, I mean, because the government is shutting down, will we -- there's jobs report that's expected in, you know, a day or two. Will we get that jobs report, the government jobs report?

MILLS: Most likely not. That's what my sources are telling me. I spoke with the former BLS commissioner who was in her role during the last government shutdown and she said it's most likely that we're not going to get that jobs report. Depending on the administration, sometimes they keep people around to push it out on Friday, especially because today we have that data.

SIDNER: Right.

MILLS: The BLS just has to publish it on Friday. But that's not going to be the case under this administration. And then the concern going forward is all the other data that they're supposed to be working on all the time, inflation data coming up. The Federal Reserve looks at all of this data when determining what to do with interest rates. And these statistics statisticians, they're not in office to be --

SIDNER: Right.

MILLS: -- gut checking that data and making sure that there are no errors and factual errors coming in. So it's really critical to have them there and they're going to be gone for a while.

SIDNER: What do you think though that stocks have generally continued to rise through a time of we're seeing like stubborn inflation. We're seeing like you said, the jobs market that is growing weaker. And every time we get one of these reports we're seeing lower numbers, a negative net jobs increase. What is -- what is happening here? Because the market is still at an all-time high?

MILLS: And we just had the best September in 15 years. So that also puts the market at a little bit more risk of this shutdown potentially causing a negative impact. But this is my favorite thing to talk about because it doesn't make sense. Why is the market continuing to rally --

SIDNER: They don't match.

MILLS: -- when we have all of these issues going on, all these headwinds? A lot of it is the AI story about 10 stocks make up 40 percent of the stock market right now. And that's the Nvidia as your Microsoft's, your Amazons and they are spending so much money on each other. Their earnings growth is justifying these stock prices and stock market runs off of earnings. So if these companies keep having great earnings, it makes sense for these stocks to continue to go up.

And then you just have record enthusiasm from investors and this record dip buying from retail to all of that, creating this kind of positive soup for the market even though we have all these headwinds.

SIDNER: I saw this incredible number that the highest earners, the 10 percent of highest earners are feeling 50 percent of the economic growth of the buying.

MILLS: Yes.

SIDNER: Pretty stark there. We'll have to see what happens with this market. There's a lot of things that don't match. But the stock market is still doing fairly well. We'll see what happens when the opening bell ticks.

MILLS: Absolutely.

SIDNER: Appreciate you. Thank you, Madison. John.

[09:39:55]

JOHN BERMAN, CNN ANCHOR: All right. This actress is not real. And by real, I mean human. Why this AI creation is causing such controversy in Hollywood?

(COMMERCIAL BREAK)

BOLDUAN: The reason this is getting attention is this actress is completely AI generated by a company called Particle6.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Tilly Norwood 100 percent AI generated by some company called Particle6.

[09:45:05]

UNIDENTIFIED MALE: She'll do anything I say. I'm already in love.

UNIDENTIFIED MALE: Girl next door vibes.

UNIDENTIFIED FEMALE: Like if a Sunday roast went to drama school and got BAFTA optimized.

UNIDENTIFIED MALE: But can she cry on Graham Norton?

UNIDENTIFIED FEMALE: Of course she can. And it will be clipped, subtitled and monetized on TikTok by lunchtime.

(END VIDEO CLIP)

BOLDUAN: And Tilly Norwood has human actors quite a bit upset and definitely speaking out this morning. Major stars speaking up saying that the AI, this, was trained using their work without their permission and without compensation. That is where Clare Duffy comes in to tell us about all of this and why this one seems different than other things.

CLARE DUFFY, CNN TECH REPORTER: Yes, I mean, it's really striking from that clip that you just played there that the first mainstream version of this we've seen, they're advertising it by saying, this is a young woman who will do whatever we say --

BOLDUAN: I know.

DUFFY: -- whatever we want. This speaks to the concerns that AI actor -- not AI actors, human actors --

BOLDUAN: Yes.

DUFFY: -- as well as other creatives, writers, directors have been having that their work has been used to train these AI systems and that then those AI systems could go on to replace them. So this really has sparked backlash, in particular after there were reports that Hollywood talent agents have been looking to sign Tilly Norwood to shop out for acting gigs. We've seen a number of mainstream actors turning to this Instagram page to express their frustration. I just want to read some of these comments.

Cameron Cowperthwate says, "This is incredibly thoughtless and frankly, disturbing. I hope this backfires in every way, humanly and, well, non-humanly possible." Mara Wilson says, "You didn't make this. Hundreds of real workers, real photographers, camera operators, heck, even farmers made this. You took their work and pretended it was yours." And Sophie Turner says simply,"

Wow. No thanks." We also are now seeing a statement from the actors union, SAG-AFTRA, which says "SAG-AFTRA believes creativity is and should remain human centered." The union is opposed to the replacement of human performers by synthetics. And they also say that they don't think that people want to see this AI generated media. Now, the creator of this actress, Eline Van der Velden. She's the founder of this company, Particle 6. She says this wasn't meant to replace human actors. She says, "To those who have expressed anger over the creation of our AI character, Tilly Norwood, she is not a replacement for a human being, but a creative work, a piece of art. Just as animation, puppetry or CGI opened fresh possibilities without taking away from live acting. AI offers another way to imagine and build stories. But I have to imagine that's cold comfort to the actors --

BOLDUAN: Totally.

DUFFY: -- who feel like this wouldn't exist without their work. And we're only going to see more and more of this as this technology improves.

BOLDUAN: And where that line is, the -- where that line is defined and when it is passed, if it is of like live actors and very much created, not live actors in replacing them. It's good to see you. Thank you so much.

Sara.

SIDNER: I don't want to put this into the world, but AI anchors anyone like I think it could happen.

BOLDUAN: Sara, shush. Shush.

SIDNER: I'm just -- I just think that is a real thing that could happen and I'm concerned. But there's so much to be concerned about these days, including our breaking news this morning. New York City building looks like an apartment building there has partially collapsed. These are live pictures here. You're seeing the number of rescue teams and firefighters out there trying to figure out if anyone has been injured in this collapse.

You can see a lot of movement there this morning. We are staying on top of this and we'll bring you live updates as we get them. That story and more ahead.

(COMMERCIAL BREAK)

[09:53:05]

(BEGIN VIDEO CLIP)

BERMAN: All right, we are at the Food Network Test Kitchen for the CNN Original Series "Breaking Bread" with Tony Shalhoub. We're here with Chef Camari Mick, and we are making coconut loaf.

So what exactly do we have going on here?

CAMARI MICK, CHEF: We have coconut sugar, cane sugar, apple butter, and cocoa butter as well.

BERMAN: I think you're like one of the first actors to ever have his own show about bread. You must like it a lot.

TONY SHALHOUB, CNN "BREAKING BREAD" HOST: I do, actually. I was originally wanting to call the show I See Bread People, but --

BOLDUAN: Seriously?

SHALHOUB: -- but they didn't want to go for that.

BOLDUAN: But what is the deal with bread, Tony? Why do you love it so much?

SHALHOUB: A lot of things start with bread. Meals start with bread. Conversations start with bread. That's kind of what drew me to this idea, to explore it all over the world.

BOLDUAN: You draw on so many influences. Your Jamaican background. Are you French and Italian trained as well?

MICK: I'm classically French trained, and then I've worked in several Italian restaurants.

BOLDUAN: So, I mean, what does coconut bring to a dish, do you think that's unique?

MICK: It brings a little bit of earthiness, and it rounds out a flavorful loaf in a way that is just reminiscent to me of sitting on the beach and drinking straight from a coconut. So I'm going to have you add your flour, salt, baking soda, baking powder, cinnamon into this sifter here.

BERMAN: All of it?

MICK: All of it.

SHALHOUB: Not in that order, no, I'm sorry.

BERMAN: Tony, did you learn how to cook better in the process of doing this show?

SHALHOUB: I don't know that I learned to cook better, but it opened my eyes to a lot of dishes and a lot of foods that I was not familiar with. In places like Brazil, Iceland, Japan. There are things out there that I just -- I just had no idea that they existed and ways of combining them.

BOLDUAN: Your episode, you learned from Camari here in New York City, you did like your croissants with a turmeric. Was there a flavor that surprised you in bread?

SHALHOUB: Many, actually, many -- I mean, again, I keep going back to Brazil. They do an acai bao bun, like a steamed bun that's really extraordinary. It just really was eye opening.

[09:55:04]

MICK: So this is our coconut meat that has been grated, and then we can add chopped walnuts just for crunch. Also, it's vegan. We're making it even more healthy, we're adding more protein to it. And then we're going to bake it at 325 for 55 to 70 minutes.

So it's been an hour and we have our beautiful cake here. It has cooled and we're going to do a little bit of coconut water glaze on it.

SHALHOUB: Coco Loco.

MICK: Coco Loco.

BOLDUAN: I love it. I find one of the challenges with baking is like it is a science, but there's a touch and feel to it.

SHALHOUB: You find a real mix of people. One baker might be just super, like, by the touch. Another guy was literally weighing everything on a digital scale, pulling grains of salt so you get a whole spectrum.

BERMAN: That's like the monk version.

SHALHOUB: Exactly.

BOLDUAN: Oh, legit.

BERMAN: I love coconut.

SHALHOUB: Really good. You know what it needs, though? A little more frosting.

(END VIDEO CLIP)

BOLDUAN: Yes. Because he doused it.

BERMAN: He dubbed the whole thing.

BOLDUAN: He like -- he like -- it was not a drizzle. Anyway, the new CNN Original Series Tony Shalhoub "Breaking Bread" premieres Sunday, 9:00 p.m. Eastern and Pacific only on CNN.

SIDNER: I've never been more annoyed and jealous at the same time of the two of you --

BOLDUAN: We were so upset that you couldn't be there.

SIDNER: -- that I could not be there.

BOLDUAN: We were so -- we kept saying that.

SIDNER: That looked good. I'm sure you saved me some bread.

BERMAN: I would have saved you some, but I ate it instead.

SIDNER: Right.

BERMAN: Thank you all for being with us to CNN News Central. "Situation Room" up next.

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