US companies cut 10,000 jobs in August: ADP Report

Updated on: Thursday, September 02, 2010

Private companies in the US slashed as many as 10,000 jobs in August, in yet another indication that economic recovery is faltering.

The ADP National Employment Report released today showed that the American private sector cut 10,000 jobs last month, with most of the industries reducing their head count.

Figures in the report does not include the temporary hiring made by the Federal government for census activities.

The report is maintained by Macroeconomic Advisers, LLC.

"The decline in private employment in August confirms a pause in the recovery already evident in other economic data... This month's decline in employment followed six monthly increases from February through July," Macroeconomic Advisers' Chairman Joel Prakken said.

Last month, employment in goods manufacturing sector dropped by 40,000. Construction and manufacturing industries saw the loss of 33,000 and 6,000 jobs, respectively.

On the other hand, services sector saw an addition of 30,000 jobs in August.

Going by the report, small-size businesses -- those with less than 50 workers -- saw 6,000 job losses. Employment in medium-size companies, having 50 to 499 workers, declined by 5,000 in August.

Despite massive stimulus measures and cheaper credit, the American economy is lagging. Even though, the GDP grew 1.6 per cent in the June quarter, unemployment rate remained high at 9.5 per cent in July.

US companies cut 10,000 jobs in August: ADP Report

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