ADP Says U.S. Companies Reduced Payrolls by 522,000 in January
By Shobhana Chandra
Feb. 4 (Bloomberg) -- Companies in the U.S. cut an estimated 522,000 jobs in January as the economy weakened at the start of the year, a private report based on payroll data showed today.
The drop in the ADP Employer Services gauge was less than economists forecast and followed a revised cut of 659,000 for the prior month.
Employers are slashing workers as clogged credit markets and slumps from housing to manufacturing threaten to extend the longest recession in a quarter of a century. Persistent job losses will probably further curb consumer spending, which represents about 70 percent of the economy.
“There is clearly continuing deterioration in the job market,” Mike Englund, chief economist at Action Economics LLC in Boulder, Colorado, said before the report. “It will pull down incomes and consumer spending.”
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