The ADP National Employment Report showed job cuts declined in November for the eighth straight month, but not as much as forecast. According to the report, private sector lost 169,000 last month, worse than the 150,000 that analysts had estimated. ADP said 195,000 jobs were lost in October.
ADP: Joel Prakken, Chairman of Macroeconomic Advisers, LLC, which partners with ADP to compile the data, said ” Although overall economic activity is stabilizing, employment usually trails economic activity, so it is likely to decline for at least a few more months.”
Prakken added, “November’s ADP Report estimates nonfarm private employment in the service-providing sector fell by 81,000. Employment in the goods-producing sector declined 88,000, with employment in the manufacturing sector dropping 44,000, the smallest decline since May of 2008.”
“Large businesses, defined as those with 500 or more workers, saw employment decline by 44,000, while medium-size businesses with between 50 and 499 workers declined 57,000. Employment among small-size businesses, defined as those with fewer than 50 workers, declined 68,000,” said Prakken.
Prakken went on to say, “In November, construction employment dropped 44,000. This was its thirty-fourth consecutive monthly decline, and brings the total decline in construction jobs since the peak in January 2007 to 1,721,000. Employment in the financial services sector dropped 17,000, the twenty-fourth consecutive monthly decline.”
While the labor market remains fragile, slowdown in job losses boosts the chances that job growth could appear in early 2010.
The ADP jobs report is often used as a gauge for Friday’s monthly unemployment report from the DOL. Analysts polled recently by Reuters projected U.S. payrolls likely shrank by 130,000 in November, compared with a 190,000 decline in October. The unemployment rate is forecast to be unchanged at 10.2%.