Private Sector Sheds 254,000 Jobs

ROSELAND, N.J. (TheStreet) -- Everyone knows that metrics pointing to economic recovery can only go so far as long as job losses continue. And if today's job-loss snapshot is any indication, though things may be improving, there's a ways to go.

Private sector employers slashed more jobs in September than many economists anticipated -- though it was still the smallest cut in jobs since July of 2008. So says the latest ADP National Employment Report, which was issued this morning.

According to the report, 254,000 jobs were cut from private sector payrolls. Economists polled by Thomson Reuters expected the report to show a shallower jobs cut of 200,000. But that still bettered August's dip of 277,000 jobs, which was revised from the previously announced 298,000.

Though Joel Prakken, Chairman of the Macroeconomic Advisers, said in the press release that losses have ebbed during the last two quarters, he was also quick to add that the outlook for jobs remains cloudy. "Nevertheless, employment, which usually trails overall economic activity, is likely to decline for at least several more months, with losses continuing to diminish," he said.

Among the varying business sizes, the report showed that the deepest cuts were felt in the small business sector, or those employing less than 50 employees, whose employers eliminated some 100,000 jobs during the month. Construction employment fell by 73,000 jobs and manufacturing saw employers cleave around 74,000, while financial services lost 19,000.

Still, the private sector metric may offer some clues to a highly anticipated unemployment report due out Friday from the Labor Department. Many expect the unemployment rate, which was at 9.7% in August, to tick higher to 9.8% in September.

Also in September, Dell(DELL Quote), Monsanto(MON Quote) and Deere(DE Quote), among others, announced plans to eliminate jobs.

-- Written by Sung Moss in New York

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