Private Sector Job Losses Continue To Moderate

Roseland, NJ, Sept. 2, 2009--Private sector jobs fell by 298,000 in August, according to the ADP employment report released Wednesday.

The drop suggests nonfarm payrolls may fall by more than the 250,000 anticipated by economists ahead of the government's much-anticipated report due out Friday morning.

The ADP report doesn't include the government sector. Economists believe there may be a slight increase in government jobs in August due to the economic-stimulus plan enacted earlier this year.

The ADP report is consistent with a "less bad" labor market marked by a clear trend on lessening job losses, economists said.

The job losses as compiled by ADP were the fewest in any month since last September.

Job losses averaged close to 700,000 in the first quarter and 500,000 in the second quarter. This average has fallen to around 300,000 for the first two months of the third quarter.

According to ADP, the goods-producing sector cut 152,000 jobs in August, including 74,000 in manufacturing.