Wednesday, August 5, 2009

Job Loss Decelerating?




ADP has released its National Employment Report for July reporting a 371,000 decrease in non-farm private sector jobs. ADP has also revised its numbers for May from a decline of 473,000 to a decline of 463,000.

The ADP report states, July’s employment decline was the smallest since October of 2008. As a trailing economic indicator, unemployment is expected to continue to rise for the next few months. As the recession recedes and the economic recovery takes hold employment is likely to decline for at least several more months, albeit at a diminishing rate.

Highlights of the report include:

The report estimates non-farm private employment in the service-providing sector fell by 202,000.

Employment in the goods-producing sector declined 169,000, with employment in the manufacturing sector dropping 99,000, its smallest monthly decline since September of 2008.

Large businesses, defined as those with 500 or more workers, saw employment decline by 74,000, while medium-size businesses with between 50 and 499 workers declined 159,000.

Employment among small-size businesses, defined as those with fewer than 50 workers, declined 138,000. Since reaching peak employment in January 2008, small-size businesses have shed nearly 2.4 million jobs.

In June, construction employment dropped 64,000. This was its thirtieth consecutive monthly decline, and brings the total decline in construction jobs since the peak in January 2007 to 1,483,000.

Employment in the financial services sector dropped 26,000, the twentieth consecutive monthly decline.

The full report can be accessed here: ADP National Employment Report

Risk: unemployment, recession

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