Private Sector Job Cuts Fewest Since November

Roseland, NJ, June 3, 2009--The U.S. private sector cut 532,000 jobs in May, the fewest jobs lost since November, according to the ADP employment index released Wednesday.

Goods producing industries cut 267,000 jobs while services cut 265,000.

Manufacturing firms cut 149,000 positions, the 39th consecutive decline. Construction firms shed 108,000 jobs, the 28th straight monthly decline. Financial firms cut 32,000 jobs, the 18th straight decline.

The pace of job cutting has slowed in recent months, from an average of 691,000 in the first three months of the year to 539,000 over the past two months. More than half a million jobs have been lost in each of the past seven months.

The index comes two days before the government releases its estimate of May nonfarm payrolls. Economists surveyed by MarketWatch are looking for payrolls to drop by 500,000 in the government survey, which would be the smallest decline since October.

The ADP index does not include government jobs.
 
In a separate report, outplacement firm Challenger Gray & Christmas reported its unscientific tally of corporate layoff announcements fell 16% to 111,182 in May compared with April. Layoff announcements were 7.4% higher than a year earlier.