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Payroll services company ADP (NASDAQ: ADP) released employment data on Wednesday saying that the economy is likely to keep shedding jobs until mid-2010.
But, in both service- and goods- producing industries, employment declines are slowing. October was the seventh consecutive month in which fewer jobs were lost than in the previous month. This reflects the economy's gradual recovery from a deep recession - recently released economic data indicated that the economy grew 3.5 percent, annualized, in the third quarter.
Economists note, however, that employment typically lags the behavior of the broader economy. For example, ADP's latest report shows that employment growth in nonfarm goods-producing industries did not really plummet until spring 2008, even though the recession is believed to have started in late 2007.
The Federal Reserve, convening on Wednesday, will likely keep its target interest rates close to zero to encourage spending and help the economy get back on its feet. Seventy percent of the American economy - as journalists never tire of reminding readers - is dependent on consumer spending.
By Benjamin Foster
Employment likely to keep declining, even in the face of a broader recovery
Payroll services company ADP (NASDAQ: ADP) released employment data on Wednesday saying that the economy is likely to keep shedding jobs until mid-2010.But, in both service- and goods- producing industries, employment declines are slowing. October was the seventh consecutive month in which fewer jobs were lost than in the previous month. This reflects the economy's gradual recovery from a deep recession - recently released economic data indicated that the economy grew 3.5 percent, annualized, in the third quarter.
Economists note, however, that employment typically lags the behavior of the broader economy. For example, ADP's latest report shows that employment growth in nonfarm goods-producing industries did not really plummet until spring 2008, even though the recession is believed to have started in late 2007.
The Federal Reserve, convening on Wednesday, will likely keep its target interest rates close to zero to encourage spending and help the economy get back on its feet. Seventy percent of the American economy - as journalists never tire of reminding readers - is dependent on consumer spending.
By Benjamin Foster
