US companies cut 4,91,000 jobs in April
US private sector job losses slowed in April, cutting 491K jobs in April versus 708, 000 lost in March, '09. Global credit crisis | Survive crisis | Competitive economies
By PTI |
NEW YORK: In a possible sign that the worst may be over for the country's labour market, a new report shows that American private companies slashed as many as 4,91,000 jobs in April, much less than expected.
The latest ADP National Employment Report showed that non-farm private employment fell 4,91,000 from "March to April 2009 on a seasonally adjusted basis".
Experts were expecting that the decline would be more than 6,00,000.
"The estimated change of employment from February to March was revised by 34,000, from a decline of 742,000 to a decline of 7,08,000," ADP said in a statement on Wednesday.
According to the report, private employment in the service-providing sector plunged by 2,29,000 in April. During the same period, jobs in the goods-producing segment decreased 2,62,000 while that in the manufacturing sector dropped by 1,59,000.
Last month, construction employment dropped 95,000, which was also the "smallest" in nearly six months.
"This was its twenty-seventh consecutive monthly decline, and brings the total decline in construction jobs since the peak in January 2007 to 1,261,000. April's decline, however, was the smallest since November of 2008," the statement said.
Large businesses, defined as those with 500 or more workers, witnessed their employment decline by 77,000 whereas medium-size businesses -- having between 50 and 499 workers -- skid by 2,31,000.
"The employment declines among medium-and small-size businesses indicate that the recession continues to spread beyond manufacturing and housing-related activities to almost every area of the economy," it noted.
In the last six months of 2008, the subset represented nearly 4,00,000 US business clients representing nearly 24 million American employees working in all private industrial sectors, ADP said.
The latest ADP National Employment Report showed that non-farm private employment fell 4,91,000 from "March to April 2009 on a seasonally adjusted basis".
Experts were expecting that the decline would be more than 6,00,000.
"The estimated change of employment from February to March was revised by 34,000, from a decline of 742,000 to a decline of 7,08,000," ADP said in a statement on Wednesday.
According to the report, private employment in the service-providing sector plunged by 2,29,000 in April. During the same period, jobs in the goods-producing segment decreased 2,62,000 while that in the manufacturing sector dropped by 1,59,000.
Last month, construction employment dropped 95,000, which was also the "smallest" in nearly six months.
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"This was its twenty-seventh consecutive monthly decline, and brings the total decline in construction jobs since the peak in January 2007 to 1,261,000. April's decline, however, was the smallest since November of 2008," the statement said.
Large businesses, defined as those with 500 or more workers, witnessed their employment decline by 77,000 whereas medium-size businesses -- having between 50 and 499 workers -- skid by 2,31,000.
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Further, small-size entities, which have less than 50 workers, saw a fall of 1,83,000 in employment. "The employment declines among medium-and small-size businesses indicate that the recession continues to spread beyond manufacturing and housing-related activities to almost every area of the economy," it noted.
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The report sponsored by ADP is maintained by Macroeconomic Advisers, LLC and it is a measure of employment derived from an anonymous subset of roughly 5,00,000 US business clients. In the last six months of 2008, the subset represented nearly 4,00,000 US business clients representing nearly 24 million American employees working in all private industrial sectors, ADP said.
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