Businesses shedding jobs at rapid pace, private report says
Employers eliminated an estimated 250,000 jobs in November, the most since November 2001, according to a private report based on payroll data released today.
The drop was larger than forecast and followed a revised 179,000 total in October that was more than previously estimated, ADP Employer Services said.
Companies from Citigroup Inc. to General Motors Corp. have stepped up the pace of firings with the U.S. economy in its first recession since 2001. A government report in two days may show that the economy lost jobs in November for an 11th consecutive month, according to a Bloomberg News survey of economists.
The ADP report was forecast to show a decline of 205,000 jobs, after an originally reported drop of 157,000 in October, according to the median estimate of 22 economists in a Bloomberg News survey. Projections of job losses ranged from 169,000 to 350,000.
ADP includes only private employment and does not take into account hiring by government agencies. Macroeconomic Advisers LLC in St. Louis produces the report jointly with ADP.
Other labor-market reports have also shown weakness. Job cuts in November soared to 181,671, the largest monthly layoff toll since January 2002, according to a report released today by outplacement firm Challenger, Gray & Christmas Inc. That number, led by 91,356 cuts in the financial services industry, was 148 percent higher than a year ago.
As economic data have pointed to a deteriorating economy, the business-cycle dating committee of the National Bureau of Economic Research announced on Dec. 1 that the economy entered a recession in December 2007, the first downturn since 2001.
Today’s ADP report showed a decrease of 158,000 jobs in goods-producing industries, including manufacturers and construction companies. Service providers cut 92,000 workers. Employment in construction fell by 44,000, the 24th consecutive month of job cuts in the industry.
Dice Holdings Inc. said today that its survey of hiring companies and recruiters found one-third of companies anticipate layoffs while two-thirds of companies and recruiters plan to scale back on hiring plans. A similar survey in June found that 20 percent planned layoffs and 52 percent expected to hire fewer workers.
Companies expecting layoffs represented diverse industries, including gaming and hotels, pharmaceuticals, technology, manufacturing and advertising.