- ADP report showed that non-farm private employment fell by 371,000 jobs in July following a revised decrease of 463,000 jobs in June.
- Economist had been expecting a decrease of about 350,000 jobs compared to the loss of 473,000 jobs originally reported the previous month.
- Drop in jobs in July was the smallest since of a decrease of 352,000 jobs in October 2008.
- Adding that the decrease continues the notable improvement seen between the first and second quarters of 2009.
- Payroll processor said that employment is likely to decline for at least several months despite recent indications that overall economic activity is stabilizing, as employment usually trails overall economic activity.
- Drop in private sector employment in July reflected decreases in jobs in both the service-providing and goods-producing sector.
- Service providing sector lost 202,000 jobs, employment in the goods-producing sector fell by 169,000 jobs due in part to the loss of 99,000 manufacturing jobs.
- Report also showed notable decreases in employment at small and medium-size businesses, which lost 138,000 jobs and 159,000 jobs.
- Employment by large businesses fell by a less bad 74,000
"One of the things we know is that access to credit has been difficult to small businesses, as credit becomes available, we may see a more rapid rate of recovery." - Chris Varvares (President, Macroeconomic Advisers)
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