informationliberation
The news you're not supposed to know...




An Introduction to Austrian Economics: Understand Economics, Understand Everything
The Century of the Self: The Untold History of Controlling the Masses Through the Manipulation of Unconscious Desires
The Disappearing Male: From Virility to Sterility

The Obama Deception: The Mask Comes Off
Operation Gladio: The Hidden History of U.S. Sponsored False Flag Terrorism in EuropeThe New American Century: The Untold History of The Project for the New American Century
(more)
Article posted Apr 02 2010, 8:04 PM Category: Economy Source: Bloomberg Print

ADP Says U.S. Companies Unexpectedly Cut Payrolls

By Timothy R. Homan and Courtney Schlisserman

March 31 (Bloomberg) -- Companies in the U.S. unexpectedly cut payrolls in March, according to data from a private report based on payrolls.

The 23,000 decline was the smallest in two years and followed a revised 24,000 drop the prior month, data from ADP Employer Services showed today. Over the previous six months, ADP’s initial figures have overstated the Labor Department’s first estimate of private payroll losses by as little as 2,000 in February to as much as 151,000 in November.

Companies are still hesitant to add workers until they see sustained sales gains and are convinced the economic recovery has taken hold. Economists surveyed by Bloomberg News anticipate the government’s report April 2 will show payrolls increased by 184,000, in part due to temporary hiring by the federal government to conduct the 2010 census and because of better weather compared with February.

“The labor market trend is still up,” said David Milleker, chief economist at Union Investment GmbH in Frankfurt, who was the only economist in a Bloomberg News survey to forecast the ADP figures would show a loss of jobs. “Today’s numbers might have disappointed relative to expectations but indicate not in the least a change in trend. It takes some more time for private sector job creation to return to normal.”

Weather Effects

A March payroll gain in line with the median estimate is “a reasonable kind of number” because ADP’s figures aren’t influenced by weather and don’t include government payrolls which will reflect hiring on temporary workers to conduct the census, Prakken said. ADP includes only private employment and doesn’t take into account hiring by government agencies.

Stock-index futures dropped after the report. The contract on the Standard & Poor’s 500 Index fell 0.4 percent to 1,164.3 at 9:30 a.m. in New York.

“The economic recovery has not been long enough or strong enough along the way yet to produce the kind of rapid employment that people are hoping for,” Joel Prakken, chairman of Macroeconomic Advisers LLC in St. Louis, which produces the figures with ADP, said in a conference call with reporters after the report.

The ADP figures were forecast to show a gain of 40,000 jobs, according to the median estimate of 35 economists surveyed by Bloomberg. Projections ranged from a loss of 20,000 to a 100,000 gain.

March Rebound

Economists including Nigel Gault of IHS Global Insight in Lexington, Massachusetts, say severe winter storms in parts of the country last month likely depressed Labor Department payroll figures, while better weather in March will probably boost to this month’s numbers. Weather has less influence on the ADP report, economists say.

“Today’s figure does not incorporate a weather-related rebound that could be present in this month’s” report from the Labor Department, Prakken said in a statement. “It is reasonable to expect” that the government’s report will be “stronger” than the ADP estimate, he said.

The Labor Department’s report in two days is forecast to show the unemployment rate held at 9.7 percent in March for a third consecutive month, according to the Bloomberg survey median. The jobless rate has dropped since reaching a 26-year high of 10.1 percent in October.

The economy has lost 8.4 million jobs since the recession began in December 2007, the most of any downturn in the post- World War II era. In February, U.S. payrolls shrank by 36,000.

Goods Producers

Today’s ADP report showed a decrease of 51,000 workers in goods-producing industries including manufacturers and construction companies. Service providers added 28,000 workers.

Employment in construction fell by 43,000, while factories lost 9,000 jobs, ADP said.

Companies employing more than 499 workers shrank their workforces by 7,000 jobs. Medium-sized businesses, with 50 to 499 employees, cut 4,000 jobs and small companies decreased payrolls by 12,000, ADP said.

Caterpillar Inc., the world’s largest maker of construction equipment, said last week that it plans to hire 500 workers this year to expand a generator plant in Newberry, South Carolina. “The expansion is likely to take three to four years and could vary based on demand and other factors,” Jim Dugan, a Caterpillar spokesman, said March 17 in an e-mail.

Other companies are still trimming payrolls. J.M. Smucker Co., the maker of jams, Folgers coffee and Jif peanut butter, said last week it is reducing the number of North American manufacturing facilities to 18 from 22. The cuts are estimated to result in a reduction of 700 full-time positions, or 15 percent of the Orrville, Ohio-based company’s workforce.

The ADP report is based on data from about 360,000 businesses with more than 22 million workers on payrolls. ADP began keeping records in January 2001 and started publishing its numbers in 2006.

To contact the reporters on this story: Timothy R. Homan in Washington at thoman1@bloomberg.net; Courtney Schlisserman in Washington at cschlisserma@bloomberg.net





Latest Economy
- Block on CNBC: Privatize the Roads
- Burgeoning Regulations Threaten Our Humanity
- How Government Forces the Poor Into Black Markets
- "America Has Ceased to Exist": Investment Guru Doug Casey on the Coming Economic Meltdown
- The Bond Trap
- Entrepreneurs Are Moral Heroes
- Faber: Fed is making rich richer, causing increase in income inequality
- Self-Described “Austrian Economics Geek,” Defender of Personal Self-Defense, Reads LewRockwell.com, Wants to Abolish the FDA, Supports the Right of Secession, Reads Fred Reed on LRC, Volunteered for Ron Paul Campaign









No Comments Posted Add Comment


Add Comment
Name
Comment

* No HTML


Verification *
Please Enter the Verification Code Seen Below
 


PLEASE NOTE
Please see our About Page, our Disclaimer, and our Comments Policy.


FAIR USE NOTICE
This site contains copyrighted material the use of which in some cases has not been specifically authorized by the copyright owner. Such material is made available for the purposes of news reporting, education, research, comment, and criticism, which constitutes a 'fair use' of such copyrighted material in accordance with Title 17 U.S.C. Section 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner. It is our policy to respond to notices of alleged infringement that comply with the DMCA and other applicable intellectual property laws. It is our policy to remove material from public view that we believe in good faith to be copyrighted material that has been illegally copied and distributed by any of our members or users.

About Us - Disclaimer - Privacy Policy



Advanced Search
Username:

Password:

Remember Me
Forgot Password?
Register

Police Officers Caught On Camera Planning To Kill Noisy Animal Prior To Fatally Shooting It - 07/22Undercover Cop Befriends Autistic Boy, Tricks Him Into Selling Him Weed & Busts Him [Full Length VICE Doc] - 07/22RIP, Anne Conte, Age Nine -- A Casualty of Marijuana Prohibition - 07/2276 Year Old Veteran Arrested for Asking Public Official to Speak Louder - 07/22People Wearing Sagging Pants Face $500 Fine, Jail In Florida City - 07/22"It Stops Today!" - 07/22Video Shows Cops In Botched Sting Execute 4 Men, Including Their Own Informant - 07/21FBI Entrapment Created 'Illusion' of Terrorist Plots: Report - 07/22

Rialto, CA Police Made to Wear Cameras, Use of Force Drops by Over Two-ThirdsCop Who Karate Chopped NY Judge In Throat Gets Off Scot-FreeFlorida Cop Smashes Compliant Woman's Face Into Car -- "Maybe Now You Can Understand Simple Instructions"VIDEO: Lapel Cam Reveals A Day In The Life Of A U.S. Police Officer (Tasing, Beating, Breaking & Entering, Stomping On Heads... and Laughing About It)Caught On Tape: Officer Sucker Punches Inmate In Face, Files Report Claiming 'Self Defense'Insult Person On Twitter, Go To JailSWAT Team Brings TV Crew To Film Raid Against Threatening Internet Critic -- Raids Innocent Grandma InsteadCop Karate Chops NY Judge In The Throat
(more)

 
Top