WASHINGTON (MarketWatch) -- Employment in the U.S. private sector fell by 39,000 in September, the first drop since January, according to the ADP employment report released Wednesday.
The drop surprised economists who had on average anticipated a 20,000 increase. U.S. stock futures pointed to a flat start on Wall Street after the report’s release.
“Today’s ADP report provided further evidence that the summer slowdown in the economy is still having a tangible negative effect on the jobs market,” said Jim Baird, partner and chief investment strategist for Plante Moran Financial Advisors.
The ADP report suggests September nonfarm payrolls may shrink by more than the 8,000 anticipated by economists ahead of the report.
Economists said the labor market has been furthered weakened by the sluggish economic growth over the summer.
This kind of report sadly seems like a broken record at this point.
Looking ahead to Friday's government jobs report, the outlook doesn't look rosy. Two separate reports issued Wednesday paint a grim picture of the job market.
Private sector employers cut 39,000 jobs in September -- a turn toward the negative after the private sector added jobs for seven straight months before, according to a report by payroll processing firm Automatic Data Processing.
Those cuts surprised economists polled by Briefing.com who had expected the report to show 18,000 jobs added during the month.
"There simply is no momentum in employment," the ADP report said.
A separate report showed employers planned more job cuts in September, up from a 10-year low reported in August.
Even though job statistics are often a volatile measure, the latest data is worrying and make a bigger case for a 10% unemployment rate, Paul Ashworth, senior U.S. economist with Capital Economics, said in a research note.
I don't think experience really matters for a president. My point is that you can't really use his own words from 4 years ago against him.
1.20.2009 - The end of one error, and the beginning of another
Based on analysis by e-forecasting.com, US monthly GDP estimates, it appears that the third quarter shows a strong slowdown in growth down to just 1 percent, after an increase of 1.7 percent in the second quarter.
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