Wednesday, February 4, 2009

Private Sector Cuts 522,000 Jobs in January

Private Sector Cuts 522,000 Jobs in January

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U.S. private sector job losses slowed slightly in January, ADP Employer Services said Wednesday in a report that came in slightly below economists' expectations.

ADP said private employers cut 522,000 jobs in January versus a revised 659,000 jobs lost in December. The December job cuts were originally reported at 693,000.

Economists had expected 530,000 private sector job cuts in January, according to the median of 27 forecasts in a Reuters poll, which ranged widely from a drop of 720,000 to losses of 495,000.

U.S. stock index futures gained more ground after the data. U.S. government bonds, which usually benefit from weak economic data, pared their gains after the ADP report.

As of its December release, the ADP methodology was revised in an effort to make it more closely predict the outcome of the government's non-farm payrolls report, which is due on Friday and expected to show 525,000 jobs were lost throughout the economy in January.

The ADP data series dates back to January 2001. The report was jointly developed with Macroeconomic Advisers LLC.

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