ADP Report: 693,000 Jobs Lost in December

Roseland, NJ, Jan. 8, 2009--U.S. companies cut an estimated 693,000 jobs in December, the most since records began in 2001, according to the ADP Employer Services report.

The drop in the ADP Employer Services gauge was larger than the median estimate of economists.

“In the last several months, the job losses have spread very aggressively into the services economy,” Joel Prakken, chairman of Macroeconomic Advisers LLC, said.

“We’re only about halfway through these job losses by our count.” He forecast about 2 million more jobs will be lost in 2009, for a total of more than 4 million in the recession.

New data put ADP’s estimate of job losses from September through November at 1.03 million, more than double its prior projection and closer to the government’s figures showing a decline of 1.29 million in private payrolls for the period.

The ADP report was forecast to show a drop of 495,000 jobs.

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.

The ADP report showed a decrease of 220,000 jobs in goods-producing industries including manufacturers and construction companies. Service providers cut 473,000 workers. Employment in construction fell by 102,000, the 21st consecutive month of cuts in the industry.