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Private sector cut 693,000 jobs in December, ADP says

Non-farm private employment decreased a gargantuan 693,000 in December -- much worse than expected -- on a seasonally adjusted basis, ADP announced Tuesday in the ADP National Employment Report (pdf).

Meanwhile, the November estimated change in employment was revised to a decrease of 476,000 from the previously-announced decrease of 250,000 jobs, ADP said.

Economists surveyed by Bloomberg News had expected the ADP report to show the loss of 495,000 private sector jobs in December.

Note: This month, ADP revised the report's methodology, hence economists say comparisons to November and prior month job reports are not recommended.

Manufacturing employment fell 120,000 in December -- its 27th consecutive monthly decline. Meanwhile, the service sector of the economy lost 473,000 jobs, the first back-to-back monthly job loss in the service sector since November 2002.

Continue reading Private sector cut 693,000 jobs in December, ADP says

November payroll loss points to likely lower corporate revenue, earnings

Nonfarm private employment decreased an enormous 250,000 in November (pdf) on a seasonally adjusted basis, ADP announced Wednesday.

Meanwhile, the October estimated change in employment was revised to a decrease of 179,000 jobs from the previously-announced decrease of 157,000 jobs.

While manufacturing employment fell 118,000 in November -- its 27th consecutive monthly decline -- the service sector of the economy lost 92,000 jobs -- its second consecutive monthly job loss, and the first back-to-back monthly job loss in that sector since November 2002.

Economist Richard Felson said the November ADP private sector report shows a U.S. economy with few strengths. "It is another distressing report. The fact that the service sector is now registering large job losses is bearish for the economy. Previously, the service sector had been the only sign of strength," Felson said. "Simply, the nation, and the other regions of the world need to create engines of growth to reverse this negative spiral of decreased demand, lower revenue, job losses, decreased demand."

Most of the decline in employment during November was accounted for by job losses at medium-sized companies, which registered a 130,000-job decline. Meanwhile, large businesses cut 41,000 jobs in November. Small businesses cut 79,000 jobs during the month.

Continue reading November payroll loss points to likely lower corporate revenue, earnings

U.S. private sector cut just 8,000 jobs in September

Non-farm private employment decreased a modest 8,000 in September on a seasonally adjusted basis, ADP announced Wednesday in the ADP National Employment Report (pdf).

Meanwhile, the estimated change in employment for August was revised to a decrease of 37,000 from the previously-announced decreased of 33,000 jobs, ADP said.

The service sector of the economy added 64,000 jobs, while employment in the goods-producing sector declined 72,000, its 22nd consecutive monthly decline. Manufacturing employment fell 48,000 in September, its 25th consecutive monthly decline.

Don't read too much into ADP data

Economist Richard Felson said the September ADP private sector report was modest good news, in that it was benign. "We can't project or read too much into the ADP data because it is just a segment of the job market, but at least the job loss numbers were not large," Felson said.

Continue reading U.S. private sector cut just 8,000 jobs in September

Could U.S. economy, American people tolerate more government intervention?

Could the U.S. economy tolerate, and, equally significant, will the American people push the nation's chief executive, the president, in the direction of more government intervention?

The view from here is: probably not. Everything in the American ethos and culture speaks against it.

Unlike in France, where the French Government is simply, "France," Americans, for the most part, view their government -- save defense spending -- usually as part of the problem, not the solution. 'Government is best which governs least' is a longstanding Americanism. And most investors/readers know about candidates who say they want to "get the Washington bureaucrats off the backs of the American people" and "clean up the mess in Washington!"

Americans are anti-central government, and they are anti-state (they generally dislike the limited federal government that exists). In the United States, it is always private first, public second.

Continue reading Could U.S. economy, American people tolerate more government intervention?

Private sector payrolls rise 40k in May, ADP says

Non-farm, private employment increased by 40,000 in May on a seasonally-adjusted basis, ADP announced Wednesday in the ADP National Employment Report. (pdf)

Meanwhile, the April 2008 estimated change in employment was revised up 3,000 to a gain of 13,000 jobs, ADP (NYSE: ADP) said.

The service sector of the economy added 77,000 jobs, while employment in the goods-producing sector declined 37,000 - - its 18th consecutive monthly decline.

Most of the decline in employment during May was accounted for by job losses at large companies, which registered an 18,000-job decline. Meanwhile, small businesses added 61,000 jobs and medium-sized business cut 3,000 jobs.

Conditions in two economic sectors hard hit by the slumping housing sector - - construction and financial activities - - continued to deteriorate. Construction employment fell 13,000 - - its 18th consecutive monthly decline - - bringing the total decline in construction jobs since the peak in August 2006 to 298,000. Employment in financial activities declined 5,000, its third straight monthly decline.

Economic Analysis: In general, a surprisingly upbeat ADP job report. The 40,000 job gain wasn't nearly enough to keep unemployment from rising, but at least it wasn't a decline. However, economists caution that one should not read too much into the monthly ADP job report, due to its limited scope (private sector payrolls). The more-telling indicator is the U.S. Labor Department's monthly payroll statistic, and May 2008's data will be released Friday at 8:30 a.m. EDT. That report is expected to show a 60,000-job decline, according to a Bloomberg News survey of economists.

April private sector jobs rise 10k, better than expected

Non-farm private employment increased 10,000 in April 2008 on a seasonally adjusted basis, Automatic Data Processing announced Wednesday in the ADP National Employment Report (pdf).

Meanwhile, the March 2008 estimated change in employment was revised down 5,000 to a gain of 3,000 jobs, ADP said.

In the April 2008 job report, employment in the service sector grew 64,000, while the goods-producing sector declined 54,000, its 17th consecutive monthly decline. Manufacturing employment fell 26,000 in April 2008, its 20th consecutive monthly decline.

Economist Peter Dawson called the April 2008 report "a qualified, very modest, positive surprise. At least it wasn't negative."

Continue reading April private sector jobs rise 10k, better than expected

Private sector jobs decline in February

Non-farm private employment declined 23,000 in February 2008 on a seasonally-adjusted basis, ADP announced Wednesday in the ADP National Employment Report (pdf).

The February 2008 23,000-job-reduction contained a deceleration in employment growth across businesses of all sizes, ADP (NYSE: ADP) said. The service sector of the economy saw an increase of 47,000 jobs, while employment in the goods-producing sector declined 70,000, its 15th consecutive monthly decline. Manufacturing employment fell 40,000 in February 2008 after declining a revised 3,000 in January 2008.

Most of the decline in employment during February 2008 was accounted for by job losses at large companies, but there was a notable deceleration of employment growth at businesses of all sizes, ADP said. Employment among small-size businesses, defined as those with fewer than 50 workers, advanced just 15,000 during the month, while employment among medium-size businesses with between 50 and 499 workers dropped 4,000. This was the first outright decline at medium-size businesses since June 2003 when job growth was still recovering from the last recession. Employment at large businesses with more than 500 workers declined 34,000.

Conditions in two economic sectors hard hit by the slumping housing sector -- construction and financial activities -- continued to deteriorate in February 2008. Construction employment fell 30,000 -- its 15th consecutive monthly decline -- bringing the total decline in construction jobs since the peak in August 2006 to 236,000. Employment in financial activities declined by 5,000.

Economic Analysis: Although not a large monthly job loss, the broad-based decline suggests near-spectrum-wide weakness in the U.S. economy, with housing's doldrums continuing to take a toll. Further, the fact that small businesses as well as larger companies are reducing payrolls provides further evidence of the comprehensive of the slowdown.

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Last updated: November 10, 2009: 01:12 AM

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