Unemployment protestADP's private payroll report for September did little to ease concerns about U.S. employment woes. ADP (ADP) announced today that the private sector cut 39,000 jobs last month -- the biggest loss since January. A Bloomberg survey had expected private employers to add 20,000 jobs in September.

The lone bright spot in ADP's report: August's private employment total was revised to a gain of 10,000 jobs, rather than the previously estimated loss of 10,000. Private employers added 32,000 jobs in July and 26,000 jobs in June.

September's job decline "confirms a pause in the economic recovery already evident in other data," ADP said. A deceleration of employment occurred in all major sectors, ADP added.

Separately, private placement firm Challenger, Gray & Christmas said planned layoff announcements by U.S. employers rose 7% to 37,151 in September from 34,768 in August, Reuters reported Wednesday. However, this September's jobs cuts were down 44% compared to September 2009's 66,404. Year-to-date, jobs cuts are down 64% compared to the first nine months of 2009. So far in 2010, employers have announced 411,272 layoffs, down from 1.13 million in the same period of 2009.

Construction's Deep Slide Continued

ADP report's shows that job were cut across the board. By business size (large, medium, small) losses were 11,000, 14,000 and 14,000, respectively.

In September, construction employment declined 28,000, bringing the total number lost since the January 2007 peak to 2.3 million. Financial services lost 13,000 jobs. The goods-producing sector lost 45,000 jobs. And manufacturing lost 17,000 jobs -- the latter being the sector's third straight monthly decline. On the positive side, services added 6,000 jobs -- that sector's eighth straight monthly gain.

September's private sector employment report is a clear disappointment, and it shows that the second-quarter slowdown in U.S. GDP growth has likely continued in the third quarter.

Given the labor market's poor progress, policymakers will likely remain focused on job creation. The U.S. economy needs to create 100,000 to 125,000 jobs to keep the U.S. unemployment rate, currently a very high 9.6%, from rising again.

Investors should also keep in mind that the more-telling job statistic, containing both private and public sector job data, is the U.S. Labor Department's monthly nonfarm payroll report, and the September data will be released Friday, Oct. 8 at 8:30 a.m. ET. That report is now expected to show essentially no overall change in jobs last month. However, a Bloomberg survey of economists expects the Labor Department report to show a gain of 77,000 private sector jobs, after a loss of 54,000 jobs overall and a gain of 67,000 private sector jobs in August.

Increase your money and finance knowledge from home

Investor’s Toolbox

Improve your investing savvy with the right financial toolset.

View Course »

What is Inflation?

Why do prices go up?

View Course »

Add a Comment

*0 / 3000 Character Maximum

163 Comments

Filter by:
LARRY R.SMITH

We need job now ok bye

October 10 2010 at 6:08 PM Report abuse rate up rate down Reply
jdrumerrnr

If you don't like AOL and think it's "liberal" what are you doing here?

October 07 2010 at 9:38 AM Report abuse -2 rate up rate down Reply
sgentilejr

How dare Obama. He has some freaking nerve wanting to eliminate the Bush tax cuts on those who are already wealthy. If he raises my taxes I am not buying another new Escalade this year___I teach him.

October 07 2010 at 9:24 AM Report abuse -2 rate up rate down Reply
samithelion

Does any of what this guy wrote in the first few paragraphs make sense?

October 07 2010 at 9:16 AM Report abuse +1 rate up rate down Reply
1 reply to samithelion's comment
samithelion

I get it. August vs. September. August's numbers were revised. The ever popular revision that we've come to know and hate about this administration.

October 07 2010 at 9:20 AM Report abuse +1 rate up rate down Reply
jdrumerrnr

Where do you spread the tax burden and what government cuts would you make?

October 07 2010 at 8:08 AM Report abuse rate up rate down Reply
Robert & Lisa

Precious metals are up about 60% this year which means Americans standard of living will be going down about 60%. Thank Obama and thugs by voting against every Demoncrat on the ballot next month.

October 07 2010 at 7:50 AM Report abuse +2 rate up rate down Reply
jdrumerrnr

Still wondering who has a strangle hold on the middle class?

October 07 2010 at 7:30 AM Report abuse -2 rate up rate down Reply
2 replies to jdrumerrnr's comment
Robert & Lisa

No, Obama and thugs have there boots on our necks.

October 07 2010 at 7:51 AM Report abuse +3 rate up rate down Reply
samithelion

0bama and the Democrats are successfully obliterating the middle class. Check out the poor in suburbia article Einstein.

October 07 2010 at 9:17 AM Report abuse rate up rate down Reply
jdrumerrnr

For months, companies have been sitting on the sidelines with record piles of cash, too nervous to spend. Now they're starting to deploy some of that money - not to hire workers or build factories, but to prop up their share prices.

October 07 2010 at 7:26 AM Report abuse +1 rate up rate down Reply
1 reply to jdrumerrnr's comment
samithelion

Nobody is going to make a move when the Democrats keep passing ridiculous legislation. Isn't rocket science boyo.

October 07 2010 at 9:18 AM Report abuse rate up rate down Reply
jdrumerrnr

For the Republicans on here who have said they did great for eight years and are still doing great, why aren't you out spending? Get out help the economy. Where is your Bush boat load of money?

October 07 2010 at 7:25 AM Report abuse -2 rate up rate down Reply
1 reply to jdrumerrnr's comment
Robert & Lisa

NOBODY is defending Bush. He made his share of mistakes. But Obama and thugs didn't have to continue them and make them worse...

October 07 2010 at 7:53 AM Report abuse +3 rate up rate down Reply
Iselin007

Is the economy improving just ask yourself if you got a good job an if you do will it last . It's a long way to retirement even at age 55. Age discrimination is rising. Nothing much for older workers the goloas are based on young workers these days so you can't make it.

October 07 2010 at 6:14 AM Report abuse +2 rate up rate down Reply
1 reply to Iselin007's comment
Robert & Lisa

I hire as many older workers as young ones. They not only have more common sense in general, but are usually more honest and work harder and smarter.

October 07 2010 at 7:55 AM Report abuse +1 rate up rate down Reply