254,000 Jobs Lost in September, ADP Says, As Losses Slow

Posted by: John Tozzi on September 30, 2009

Will small and midsize service businesses lead the jobs recovery whenever it begins? That’s one indication of the latest jobs report by payroll provider ADP released this morning.

Private non-farm employers shed 254,000 jobs in September, according to the report. The projection shows job losses slowing, but months of continued losses remain ahead, according to Joel Prakken, chairman of Macroeconomic Advisers and author of the report.

All of the decline in job losses in September comes from small and midsize businesses, according to the ADP report. Large employers with more than 500 employees shed 61,000 jobs in September, about the same decline as ADP reported in August. But losses at mid-size companies (with between 50 and 499 workers) slowed significantly: they lost 93,000 jobs in September, compared to 116,000 in August. Likewise, the report shows small companies with under 50 employees losing 100,000 jobs in September, down from 122,000 in August.

The services sector also held up more strongly than the goods providing sector, with 103,000 service jobs lost in September, compared to 151,000 in the goods-providing sector.

The official Bureau of Labor Statistics jobs report will be out Friday morning. Last month, the official report projected 216,000 jobs lost in August, less than the ADP figure, but the Labor Department also counts public sector job gains and losses.

Reader Comments

Robert Schledwitz

September 30, 2009 11:05 AM

ONLY 250,000 jobs lost in September? At that rate in 12 months another 3 million workers will be joining the ranks of over 7 million who have already lost their jobs in this almost two year long recession. For over half of all these people this is also the first time they have collected unemployment or left a job by choice. Government is now collecting less money from personal taxes and paying out increased amounts of money to individuals for unemployment compensation and other services like food stamps and medical care for those uninsured. Wealthy economists in power centers may look at the economy having bottomed out and soon beginning to turn around. I hope they are right and things really do improve. But in the trenches among the unemployed running out of unemployment money and no job prospects remotely in sight for them, things are going from worry to panic and, eventually I predict, violent anger. Let us call the beast by its real name and begin acting accordingly. And that name is Depression!

Colin Blair

September 30, 2009 12:07 PM

This is a strange way of interpreting the jobs data. Exactly why should small business lead a job recovery?

Ron Hernandez

September 30, 2009 01:59 PM

ABSOLUTELY RIGHT, ROBERT! Who's fooling whom? In another 24 months the number of newly unemployed MAY REACH 6-7 MILLION on top of those already unemployed and not even counting the underemployed and those that have stopped looking for fear of wasting their time chasing "windmills." AMERICA wake up and learn to never rely on(much less trust) any Fortune 2000 corp.; instead RELY ON YOURSELVES!! We're a nation of entreprneurs- get those ideas, good, services going. You're only limited by your imagination. Yes, most of us will all be living a lower standard of living but that's only temporary. Yes,a Depression is coming but tough times never last, tough people do. With prayers and Jesus help we'll survive

Michael in Atlanta

September 30, 2009 04:18 PM

People don't want to spend money. I've run into several small companies that want to invest in people and have great ideas, but they are holding off out of fear that they will need this money to handle their current operations/payroll/expenses/etc. The current environment calls for real incentives to invest but the rulemakers are too focused on low-priority items like energy reform and healthcare reform, items that will further hurt the business community.

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What's it like to run your own company today? Entrepreneurs face multiple hurdles new and old, from raising capital and managing employees to keeping up with technology and competing in a global marketplace. In this blog, the Small Business channel's John Tozzi and Nick Leiber discuss the news, trends, and ideas that matter to small business owners. Follow them on Twitter @newentrepreneur.

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