Private-sector firms in the United States shed 693,000 jobs in December, far worse than expected, according to the ADP employment index released today, MarketWatch reported.

Employment in the services sector fell by 473,000, while employment in the goods-producing sectors fell by 220,000.

Large firms cut 91,000 jobs, medium-sized firms cut 321,000 jobs and small firms cut 281,000 jobs.

“Sharply falling employment at medium- and small-size businesses clearly indicates that the recession has now spread well beyond manufacturing and housing-related activities,” said economists for Macroeconomics Advisers in a press release. The index is computed by Macroeconomic Advisers LLC using anonymous payroll data collected by Automatic Data Processing Inc.

Economists have predicted that a government report to be released Friday will show that non-farm payrolls fell by 500,000 in December.

The ADP index covers only private-sector payrolls. Assuming government payrolls expand by 20,000 jobs or so, the ADP index implies an estimated 675,000 decrease in total nonfarm payroll employment in December, MarketWatch said.

The ADP sample is taken during the same week of the month as the government survey, using similar methods.