The US private sector lost 371,000 jobs in July more than the 350,000 that was expected. Small and medium sized businesses were the hardest hit.
FOX News reported:
A private-sector jobs report showed that employers shed hundreds of thousands of jobs during the month of July, but the pace of the job losses slowed to its best pace since the economic collapse in October last year.
According to Macroeconomic Advisers, the ADP private-sector jobs report indicated that private employers cut 371,000 jobs during the month of July, more than the 350,000-loss that was expected by economists.
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However the 371,000 loss is better than the 473,000 jobs lost in the previous month. It’s the best number by ADP since the Lehman bankruptcy disrupted the economy in the second half of 2008.
“There’s no question the peak rate of decline has passed, though these are still horrific numbers by all but the most recent standards,” said Ian Shepherdson with High Frequency Economics.
According to ADP, the bulk of the losses this month came from the small and medium-sized businesses, instead of the large corporations. Large-sized companies cut 74,000 jobs in July in all sectors, while medium-sized companies, which are businesses with 50 to 499 employees, cut 159,000 jobs. Small business, those operations with fewer than 50 employees, cut 138,000 jobs last month.