ADP: Employers Cut 79,000 Jobs in June

Roseland, NJ, July 2, 2008--U.S. firms cut an estimated 79,000 jobs in June, according to the ADP Employer Services report.

The decrease was larger than forecast and followed a revised gain of 25,000 for the prior month that was less than previously estimated. Last month's drop was ADP's largest since November 2002.

Today's ADP report showed a decrease of 76,000 jobs in goods-producing industries including manufacturers and construction companies. Service providers cut 3,000 workers, the first decline since November 2002. Employment in construction fell by 34,000. Financial services companies fired 3,000 workers, the report said.

Companies employing more than 499 workers shrank their workforces by 51,000 jobs. Medium-sized businesses, with 50 to 499 employees, reduced payrolls by 35,000 jobs and small companies added 7,000 workers.

ADP, a national payroll processing company, only estimates private sector jobs, not government jobs. Adding in the roughly 20,000 government jobs created each month, today's ADP number suggests a 59,000 drop in June non-farm payrolls.

That is in line with the expectations of economists polled by Thomson Reuters IFR Markets, who are expecting a loss of 50,000 jobs when the Bureau of Labor Statistics releases its official June employment report tomorrow