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Wednesday, November 04, 2009

ADP Report Shows Ongoing Employment Weakness

By Ken Sweet

FOXBusiness

NEW YORK-- The private sector sliced more than 200,000 jobs during October, an employment survey showed Wednesday, as corporate earnings continue to remain under pressure and the labor market remains dismal at best.

According to ADP Macroeconomic Advisers, the number of private sector jobs fell by 203,000 compared to September. While it is yet another contraction in the private-sector labor force, it is the seventh-straight month that the number of jobs lost was less than the month prior.

The ADP survey was mostly in-line with expectations of economists, who were looking for a contraction of 200,000 jobs this month.

“Despite recent indications that overall economic activity is stabilizing, employment, which usually trails overall economic activity, is likely to decline for a few more months,” ADP said in a statement.

The payroll declines were fairly broad-based this month, according to the survey. Small-sized businesses, those defined as having fewer than 50 employees, cut 75,000 jobs in October. Medium-sized businesses, those with 50 to 499 employees, also cut 75,000 employees. Businesses with greater than 500 employees cut 53,000 employees in October.

The ADP report often underestimates or overestimates jobs lost compared to the Labor Department’s more closely watched jobs report, but the survey does move markets.

Today’s report sets the stage for Friday’s jobs report, which is expected to show continued deterioration in the labor market. Economists are looking for 175,000 non-farm jobs to have been lost in September, and an unemployment rate of 9.9%.

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