Payrolls Reduced 491,000 by U.S. Companies, Fewer Than Estimated, ADP Says

[Purveyor]

Source: Bloomberg

By Bob Willis

May 6 (Bloomberg) -- Companies in the U.S. cut an estimated 491,000 workers from payrolls in April, indicating the worst of the recession’s job losses may have passed, a private report showed today.

The drop in the ADP Employer Services gauge was smaller than economists forecast and the fewest since October. March’s reading was revised to show a reduction of 708,000 workers, down from a previous estimate of 742,000.

Stabilization in consumer spending following the worst slump in three decades is stoking expectations that the recession will end in the second half of the year. Still, a Labor Department report in two days may show employers cut payrolls in April for a 16th consecutive month, pushing job losses in the current downturn to almost 6 million, according to a Bloomberg survey.

“There is a sense here of a turn,” Joel Prakken, chairman of Macroeconomic Advisers LLC in St. Louis, said on a conference call. Still, “one month’s number does not a trend make. I’m still expecting to see several more months of notable decline in employment. There will be some bumps in the road on the way.”

---CLIP---
The ADP report was forecast to show a decline of 645,000 jobs, according to the median estimate of 28 economists in a Bloomberg News survey. Projections were for decreases ranging from 560,000 to 733,000.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=agksie9X3KDQ&refer=home

[Skink]

1. How many people saw a 10 to 20% reduction in hours this month?

Probably 10 times that number.

[blue_onyx]

2. "indicating the worst of the recession’s job losses may have passed"

The worst hasn't passed in Michigan. In a month, when GM declares bankruptcy, it will get even worse.

[Turbineguy]

3. Laying off

fewer customers. That does not bode well for "competitiveness" and management bonuses.

[Dr.Phool]

4. Consider that ADP's numbers are ALWAYS wrong.

And always wrong on the rosy side.

I've been tracking their numbers for a couple of years now. The "official" government numbers will be out Friday, and as always, they'll be much higher.