We are at the end of the beginning, with much more to follow.
Bloomberg
ADP Says U.S. Companies Reduced Payrolls by 157,000
By Bob Willis
Nov. 5 -- Companies in the U.S. cut an estimated 157,000 jobs in October, the most in almost six years, a private report based on payroll data showed today.
The drop was larger than forecast and followed a revised 26,000 decrease in September that was bigger than previously estimated, ADP Employer Services said. The decline in employment was the biggest since November 2002, when the U.S. was emerging from a recession... (Unemployment tends to peak near the end of a recession. Does this imply that we might be near the end of this recession? Dream on. The recession of 2002 was a thunderstorm compared to this deluge. - Jesse)
The ADP report was forecast to show a decline of 102,000 jobs, after an originally reported drop of 8,000 in September, according to the median estimate of 28 economists in a Bloomberg News survey. Projections ranged from decreases of 245,000 to 70,000.
ADP includes only private employment and does not take into account hiring by government agencies, which is included in the monthly payroll report. Macroeconomic Advisers LLC in St. Louis produces the report jointly with ADP.
Payroll Forecast
The government's Nov. 7 report may show total payrolls fell by 200,000 last month, and the unemployment rate rose to a five- year high of 6.3 percent, according to the Bloomberg survey median. The economy has lost 760,000 jobs in the first nine months of the year.
Private payrolls dropped by an average 108,000 a month from January through September, according to the Labor Department. The ADP estimate shows average private employment gains of 2,300 in the first nine months of the year.
Job cuts announced by U.S. employers jumped 79 percent in October from a year earlier as the credit crunch rippled through the economy, a report from Chicago-based Challenger, Gray & Christmas Inc. said today. Firing announcements rose to 112,884, the highest level in almost five years, from 63,114 in October 2007.
Today's ADP report showed a decrease of 126,000 jobs in goods-producing industries including manufacturers and construction companies. Service providers cut 31,000 workers. Employment in construction fell by 45,000.
Declines Throughout
Companies employing more than 499 workers shrank their workforce by 41,000 jobs. Medium-sized businesses, with 50 to 499 employees, down 91,000 jobs and small companies decreased payrolls by 25,000.
The report did not reflect the strike by about 27,000 machinists at Boeing Co. that was resolved earlier this month, ADP said.
The ADP report is based on data from 399,000 businesses with about 24 million workers on payrolls....
