Companies Shed More Jobs, ADP Report Shows
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The private sector unexpectedly cut jobs last month, as the unemployment concerns in the U.S. continue to stifle and already trudging economic recovery.
ADP Employer Services said in a report on Wednesday that the private sector cut 10,000 jobs in August, after a revised addition of 37,000 jobs in July. The figure from July was revised down from a previously reported gain of 42,000.
Economists had expected the private sector to add 15,000 jobs last month.
The ADP report comes two days before the more comprehensive labor market report on Friday that will include the impact of government jobs, which is expected to show a loss in August of 100,000 jobs, while showing a rise of 41,000 private sector jobs. The ADP report may cause some economists to rework their forecasts.
The August unemployment rate is expected to rise to 9.6 percent for August from 9.5 percent in July.
The ADP report showed that large business with 500 or more employees added 1,000 jobs in August, while medium sized businesses cut 5,000 workers and small businesses with less than 50 workers dropped 6,000 employees.
Service-sector jobs increased by 30,000 positions last month, but factory jobs fell by 6,000.
The economy must create 125,000 to 150,000 jobs a month to simply keep the unemployment rate steady. While jobs accelerated at a steady pace in the spring, the slowing economic recovery and worries over a double-dip recession have put the clamps on hiring.
ADP Employer Services said in a report on Wednesday that the private sector cut 10,000 jobs in August, after a revised addition of 37,000 jobs in July. The figure from July was revised down from a previously reported gain of 42,000.
Economists had expected the private sector to add 15,000 jobs last month.
The ADP report comes two days before the more comprehensive labor market report on Friday that will include the impact of government jobs, which is expected to show a loss in August of 100,000 jobs, while showing a rise of 41,000 private sector jobs. The ADP report may cause some economists to rework their forecasts.
The August unemployment rate is expected to rise to 9.6 percent for August from 9.5 percent in July.
The ADP report showed that large business with 500 or more employees added 1,000 jobs in August, while medium sized businesses cut 5,000 workers and small businesses with less than 50 workers dropped 6,000 employees.
Service-sector jobs increased by 30,000 positions last month, but factory jobs fell by 6,000.
The economy must create 125,000 to 150,000 jobs a month to simply keep the unemployment rate steady. While jobs accelerated at a steady pace in the spring, the slowing economic recovery and worries over a double-dip recession have put the clamps on hiring.
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