ADP Says US Companies Cut Estimated 169000 Jobs
Dec. 2 (Bloomberg) -- Companies in the U.S. cut anestimated 169,000 jobs in November, according to a privatereport based on payroll data.
The drop, the smallest since July 2008, compares with arevised 195,000 decline the prior month, data from ADP EmployerServices showed today. The figures were forecast to show adecline of 150,000 jobs, according to the median estimate of 32economists in a Bloomberg survey.
The report signals the job market is still deterioratingand unemployment will probably climb further even as theeconomy is emerging from the worst recession since the 1930s.After overestimating payroll losses by 103,000 on average inthe five months to September, ADP’s initial estimate forOctober was in line with the government’s payroll figures.
“We’re going to see job losses extend well into 2010,”said Ryan Sweet, a senior economist at Moody’s Economy.com inWest Chester, Pennsylvania, who forecast a loss of 178,000jobs. “The labor market is crawling towards stabilization. Weneed the labor market to improve to generate the wage incomenecessary to support spending.”
Stock-index futures trimmed earlier gains after thereport. The contract on the Standard & Poor’s 500 Index wasunchanged at 1,108.4 at 8:29 a.m. in New York.
ADP includes only private employment and doesn’t take intoaccount hiring by government agencies. Macroeconomic AdvisersLLC in St. Louis produces the report jointly with ADP.
The report comes two days before a Labor Departmentrelease forecast to show the unemployment rate held at a 26-year high of 10.2 percent in November, while employers cut123,000 jobs, according to the median estimate in a Bloombergsurvey.
Fewer Announcements
Another report today showed employers last month announcedthe fewest number of job cuts since the recession began twoyears as the economic recovery encouraged companies to retainworkers. Planned firings fell 72 percent in November to 50,349from 181,671 during the same month last year, Chicago-basedplacement firm Challenger, Gray & Christmas Inc. said.
The economy has lost 7.3 million jobs since the recessionbegan in December 2007, the most of any economic slump sincethe Great Depression.
Today’s ADP report showed a decrease of 88,000 workers ingoods-producing industries including manufacturers andconstruction companies. Service providers cut 81,000 workers.
Employment in construction fell by 44,000, the 34thstraight monthly drop, while financial firms decreased jobs by17,000, ADP said, the 24th consecutive decline for theindustry.
Companies employing more than 499 workers shrank theirworkforce by 44,000 jobs. Medium-sized businesses, with 50 to499 employees, eliminated 57,000 jobs and small companiesdecreased payrolls by 68,000, ADP said.
AOL, the Internet unit being spun off from Time WarnerInc., said Nov. 19 it plans to cut about one-third of itsworkforce over the next several months. The company employsabout 6,900 people, spokeswoman Tricia Primrose said.
The ADP report is based on data from 400,000 businesseswith about 23 million workers on payrolls. ADP began keepingrecords in January 2001 and started publishing its numbers in2006.
To contact the reporter on this story:Timothy R. Homan in Washington at thoman1@bloomberg.net
Last Updated: December 2, 2009 08:32 ESTSource: Bloomberg
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