Wednesday, October 06, 2010

ADP National Employment Report: September 2010

Today, private staffing and business services firm ADP released the latest installment of their National Employment Report indicating that the situation for private employment in the U.S. took a turn for the worse in September as private employers shed 39,000 more jobs than they created in the month, the first monthly decline in eight months, bringing the total employment level 0.33% below the level seen in September 2009.

Goods-producing firms fared worse losing on net 45,000 jobs while service-providing firms added just 6,000 jobs nationwide.

Manufacturing firms shed 17,000 jobs and construction firms lost 28,000 while all size firms (1-49 employees, 50-499 employees and above 499 employees) saw losses on the month.

Looking at the chart (click for full-screen dynamic version) showing ADP’s total private nonfarm payrolls since 2001 as well as the year-over-year and month-to-month percent change, you can see that the so-called “recovery” has been both anemic and, as of late, actually weakening.

Perusing the rest of the data in the ADP dataset it’s obvious that our economy faces some significant headwinds coming from the job market with continually collapsing goods-producing payrolls and feeble trends service-producing payrolls.

Look for Friday’s BLS Employment Situation Report to likely show a similar weakening trend.