Private Sector Job Losses Declining

Roseland, NJ, Aug. 5, 2009--Private-sector employment in the U.S. fell by an estimated 371,000 jobs in the July ADP employment index, the smallest decline since October.

The goods-producing sector lost 169,000 jobs, while the service sector lost 202,000, according to ADP.

"Despite recent indications that overall economic activity is stabilizing, employment, which usually trails overall economic activity, is likely to decline for at least several more months," ADP said in a statement.

For June, private-sector jobs fell by a revised 463,000, ADP said. Job losses peaked at 736,000 in March, according to ADP.

Goods-producing industries cut 262,000 jobs after a loss of 324,000 in March, ADP said. Manufacturing companies cut 159,000 jobs and 95,000 were lost in construction. Services cut 229,000 jobs in April after 384,000 were lost in March. It was the first month since October in which goods-producing industries cut more jobs than the services did.

The ADP index does not include government jobs. To get an apples-to-apples comparison with the Labor Department report, you have to add in about 5,000 jobs typically gained in the public sector.

According to ADP, 6.6 million jobs have been lost since the recession began, in line with the 6.46 million lost in the Labor Department's estimate through June.

In another report, Challenger Gray & Christmas said corporate layoff announcements rose 31% in July to 97,373. It's the first increase since January. In the first seven months of the year, layoff announcements are up 72% compared with the same period a year ago.