ADP Employment report data better than July but details still gloomy

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  • 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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Source: RTT News, Barron's & CNN Money

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