ADP Reports Shows Surprise Drop In Jobs
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ADP announced on Wednesday that private payrolls dropped unexpectedly in March as the jobs market continues to struggle to regain growth in a sluggish economic recovery.
The ADP report showed that the U.S. shed 23,000 private-sector jobs this month, while the payroll giant revised its February reading to a decline of 24,000 jobs from a loss of 20,000.
Economists had been expecting a much brighter number, with a projection of a growth of 40,000 jobs in the private sector ahead of the Bureau of Labor Statistics' nonfarm payroll report set to be released on Friday.
The nonfarm report is expected by economists to jump by 180,000 jobs this month, after a drop of 36,000 jobs in the previous month. The nonfarm report should be bolstered by the numerous government positions added to handle the 2010 Census report.
The BLS is also expected to report that the unemployment rate has not changed this month and will remain at 9.7 percent. Economists have predicted that the unemployment rate will show little improvement this year as the recovery slowly trudges along.
The ADP showed that large businesses with 500 or more workers cut 7,000 jobs and medium-sized businesses shed 4,000 employees this month. Businesses that employ less than 50 workers saw the most downsizing with 12,000 jobs lost.
The service sector grew by 28,000 workers, while factories cut 9,000 jobs in March.
The stock markets are down in early trade Wednesday after the ADP report, with the Dow Jones Industrial Average shedding 21.89 to 10,885.73, and the NASDAQ composite index off by 2.36 to 2,408.33.
The ADP report showed that the U.S. shed 23,000 private-sector jobs this month, while the payroll giant revised its February reading to a decline of 24,000 jobs from a loss of 20,000.
Economists had been expecting a much brighter number, with a projection of a growth of 40,000 jobs in the private sector ahead of the Bureau of Labor Statistics' nonfarm payroll report set to be released on Friday.
The nonfarm report is expected by economists to jump by 180,000 jobs this month, after a drop of 36,000 jobs in the previous month. The nonfarm report should be bolstered by the numerous government positions added to handle the 2010 Census report.
The BLS is also expected to report that the unemployment rate has not changed this month and will remain at 9.7 percent. Economists have predicted that the unemployment rate will show little improvement this year as the recovery slowly trudges along.
The ADP showed that large businesses with 500 or more workers cut 7,000 jobs and medium-sized businesses shed 4,000 employees this month. Businesses that employ less than 50 workers saw the most downsizing with 12,000 jobs lost.
The service sector grew by 28,000 workers, while factories cut 9,000 jobs in March.
The stock markets are down in early trade Wednesday after the ADP report, with the Dow Jones Industrial Average shedding 21.89 to 10,885.73, and the NASDAQ composite index off by 2.36 to 2,408.33.
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