Wednesday, February 03, 2010

ADP: Private Employment Decreased 22,000 in January

by Bill McBride on 2/03/2010 08:32:00 AM

ADP reports:

Nonfarm private employment decreased 22,000 from December 2009 to January 2010 on a seasonally adjusted basis, according to the ADP National Employment Report®. The estimated change of employment from November to December 2009 was revised by 23,000, from a decline of 84,000 to a decline of 61,000.

The January employment decline was the smallest since employment began falling in February of 2008.
Note: ADP is private nonfarm employment only (no government jobs).

On the Challenger job-cut report from MarketWatch: Planned layoffs rise for first time since July: Challenger Gray
Planned layoff announcements at major U.S. corporations increased 59% in January, reaching 71,482 from a nine-year low of 45,094 seen in December, according to the latest job-cut tally by Challenger Gray & Christmas.

It was the first month-to-month increase since July, the outplacement firm reported Wednesday.

Layoff plans ran 70% lower than the 241,749 announced in January 2009, which was a seven-year high..
The BLS reports on Friday, and the consensus is for a small net gain in payroll jobs in January, on a seasonally adjusted (SA) basis, and the unemployment rate flat at 10.0%.

The relatively strong ISM manufacturing and ADP reports suggest a positive BLS number on Friday.