Business and Capital Market Analysis !!!

By Mayur Pahilajani - iStockAnalyst Writer

New York, NY - Companies in the U.S. private sector cut as many as 157,000 jobs on a seasonally adjusted basis, in October, the highest in around six years, a report showed Wednesday.

The market analysts on Wall Street were expecting the ADP report to post a drop of 102,000 jobs. The report by a private company, ADP Employer Services (ADP), showed that the private sector hurt by weakening economic growth decided to slash more jobs, largest since November 2002.

The report was released just two days ahead of the Labor Department's data on non-farm payroll growth for the month of October.

The payroll data report -- which excludes strike of some 27,000 machinists in the aerospace industry during September and October -- estimated change in employment from August to September to be revised down from a decrease of 8,000 to a decrease of 26,000.

October's employment loss was led by the number of firings in the goods-producing sector, which dropped by 126,000 jobs, for the 23rd consecutive month.

Additional cuts followed by the manufacturing sector losing 85,000 jobs and service-providing sector declined by 31,000, which dropped for the first time since November 2002.

The report showed that last month the number of construction jobs declined by 45,000, which is brings the total drop in construction jobs since the peak in August of 2006 to 455,000.

The large businesses with 500 or more workers reported 41,000 jobs decline, followed by the medium-size companies with between 50 and 499 employees reporting a drop of 91,000 in employment.

The small-size businesses with fewer than 50 employees saw a decrease in employment for the first time since November 2002, down by 25,000 jobs. The drop was the largest percentage decline since the economy was emerging from recession in early 2002, the report said.

In a separate report by outplacement consultant Challenger, Gray & Christmas, the employers in the U.S. planned to cut 112,884 jobs in the month of October, highest in almost five years.

So far this year, companies have cut as many as 875,974 jobs, which is 14 percent higher from the 768,264 workers fired in the full year of 2007, the report said.

The decline was led by financial and automotive sectors, contributing nearly 19 percent to the total jobs cut from September's total of 95,094.


Source:
IStockAnalyst