March 31st, 2010
09:34 AM ET

Private sector continues to shed jobs

Private-sector employers continued to cut jobs in March, highlighting the challenges still facing the nation's job market, according to a report released Wednesday.

Automatic Data Processing, which processes paychecks for one in every six U.S. employees, said private-sector employers cut payrolls by 23,000 jobs in March. It was the smallest monthly decline since February 2008.

Economists surveyed by Briefing.com had forecast a gain of 40,000 jobs in the month.

"American businesses are on the cusp of recovery, yet this report shows that they remain hesitant to increase their payrolls," Gary Butler, chief executive of ADP, said in a statement.

The service sector reported an increase of 28,000 jobs in March, marking the second consecutive monthly increase and the highest job growth since March of 2008.

However, that growth was offset by a loss of 51,000 jobs in the goods-producing sector and a drop of 9,000 manufacturing jobs.

Large businesses, those with 500 or more workers, saw employment decline by 7,000 jobs, while small-size businesses with fewer than 50 workers had a drop of 12,000 workers.

Employment among medium-size businesses, defined as those with between 50 and 499 workers, declined by 4,000  The ADP report precede the closely watched monthly jobs report from the Labor Department due Friday.

Economists expect that report to show employers added 190,000 jobs in March, compared to a loss of 36,000 jobs in February. The  unemployment rate is expected to remain unchanged at 9.7%.

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Filed under: Economy • Jobs • U.S.
soundoff (2 Responses)
  1. RailRoadingAmericaDotCom

    It is apparent that there is NO effort by the Obama Administration to stem the loss of jobs. Mostly "hot air" from the White House.
    We must demand President Obama force American manufacturers to return and to STAY in the USA if we are to survive. He either has to institute high tariffs on goods coming into this country, that we CAN make here or "declare war" on these stray manufacturers by issuing an Executive Order to return to the USA or face sanctions.
    It looks like our Presidents have no problems going to war with other nations, why can't it go to war to save ours. railroadingamerica.com

    March 31, 2010 at 11:09 am | Report abuse |
  2. steve

    High tariffs are not the answer. Our tariffs are bound to a specified limit on most goods anyways due to GATT obligations. Low taxes are the answer. Companies do not dare bring their assets back to the US due to the taxes that would be imposed on them. If you want to bring back these assets to receive SOME tax money from it, make it worth their while to bring them back.

    April 1, 2010 at 6:36 pm | Report abuse |