Wednesday, September 2, 2009

Private-Sector Jobs Decline by 298,000

Private-sector jobs in the U.S. fell 298,000 in August, according to ADP.

August’s ADP Report estimates nonfarm private employment in the service sector fell by 146,000. Employment in the goods-producing sector declined 152,000, with employment in the manufacturing sector dropping 74,000, its smallest monthly decline since July of 2008.

The latest data showed large businesses with 500 employees or more shed 60,000 jobs and medium-size businesses lost 116,000 workers last month. Small businesses that employ fewer than 50 workers cut 122,000 jobs in August.

Since reaching peak employment in January 2008, small-size businesses have shed nearly 2.5 million jobs.

In August, construction employment dropped 73,000. This was its thirty-first consecutive monthly decline, and brings the total decline in construction jobs since the peak in January 2007 to 1,562,000. Employment in the financial services sector dropped 19,000, the twenty-first consecutive monthly decline.

What does all this mean? If Bernanke was pumping money. the slowing in job declines would be a signal the economy was coming out of recession. But with Bernanke's helicopter grounded, this is a small positive result caused by the earlier aggressive money printing. More important at this point then new declines is how long people stay unemployed. You can't lay someone off if they are not working. Watch this data as it is reported. Further, a second break in the stock market is likely to slow new job hires dramatically.

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