April 1 (Bloomberg) -- Companies in the U.S. cut an estimated 742,000 workers in March, pointing to no relief in sight for the labor market amid the longest recession in seven decades, a private report based on payroll data showed today.
The drop in the ADP Employer Services gauge was larger than economists forecast and the most since records began in 2001. February’s reading was revised to show cut of 706,000 workers, up from a previous estimate of 697,000.
Companies are slashing staff as tight credit conditions and shrinking household wealth cause sales to shrink. The Labor Department may report in two days that employers cut payrolls in March for a 15th consecutive month, putting jobs losses in the current downturn at more than 5 million, according to a Bloomberg survey.
“The weakness in the labor market is deep and broad and means the recession really could last through the end of this year,” said Steve Cochrane, a senior economist at Moody’s Economy.com in West Chester, Pennsylvania.
The ADP report was forecast to show a decline of 663,000 jobs, according to the median estimate of 30 economists in a Bloomberg News survey. Projections were for decreases ranging from 525,000 to 750,000.
A government report April 3 may show payrolls at companies and government agencies shrank by 658,000 in March and unemployment rose to a 25-year high of 8.5 percent, according to a Bloomberg survey of economists.
Another report today also reflected a weak labor market. Job cuts announced by U.S. employers nearly tripled in March from a year earlier, led by planned cutbacks at government agencies, pharmaceutical and aerospace and defense firms, Chicago-based placement firm Challenger, Gray & Christmas Inc. said.
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United States is Insolvent
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Do these f@@@n economist ever forcast anything right?
ReplyDeleteSome of them do. A few. Like Peter Schiff.
ReplyDeleteSo Obama is gonna use $1 trillion in Stimulus to employ 2.5 million for this year when they've already lost that many by March. Americans are so screwed.
ReplyDeleteEconomic analyst
ReplyDeleteProfessional researcher. I research info and supply it to the consumer at no cost.
...We are receiving information at your own cost. Your time, research and effort is much appreciated. Thank you.
your welcome , you're information is very appreciated
ReplyDeleteWell the 1 trillion stimulus to employee 2.5 million is just an estimate. How often are politicians right when they say they are going to create X number of jobs. The answer is never, they are usually over estimating vastly. There won't be anywhere near enough growth to create that many new jobs, then with tax increases - even less. Then with the massive increase in spending and even MORE taxes with the new budget and carbon cap/trade bill.....we are screwed.
ReplyDeleteUmm blogger..I noticed you slid in that "United States is Insolvent" link...You may want to shed some light on the context of that rather than just throw it out there. It was all legalise written. I read most of it but it got tedious after awhile...What's the point exactly. Everyone knows full well they are defacto insolvent but what's the point of the link. What is its validity?
ReplyDeleteWhat's so fucking worrying is that most of the so-called economists are in DENIAL and cannot bear to reveal the inconvenient and extremely worrying truth about how deep the coming Depression is going to be. Screwed is the word.
ReplyDelete