Job losses increase

Wednesday, April 1, 2009
ADP Job Losses Awful, Doesn't Yet Include the Failure of GM, Chrysler

“The weakness in the labor market is deep and broad and means the recession really could last through the end of this year.” -Steve Cochrane

ADP Says U.S. Companies Reduced Payrolls by 742,000 in March: “Companies in the U.S. cut an estimated 742,000 workers in March, pointing to no relief in sight for the labor market amid the longest recession in seven decades, a private report based on payroll data showed today.

The drop in the ADP Employer Services gauge was larger than economists forecast and followed a revised cut of 706,000 for the prior month.

Companies are slashing staff as tight credit conditions and shrinking household wealth cause sales to shrink. The Labor Department may report in two days that employers cut payrolls in March for a 15th consecutive month, putting jobs losses in the current downturn at more than 5 million, according to a Bloomberg survey.

FN: This is bad. But it will only get worse. These numbers don’t yet include the implosion of both GM and Chrysler and the knock on effects of that on down the supply chain. Job losses will continue to come in at horrific levels for months to come.