Private sector job loss in October

Layoffs and job cuts

Over the course of the economic crisis, HR managers throughout the US have had to deal with record numbers of layoffs. Now though, after reports that American companies reduced jobs at the slowest pace in more than a year last month, there is hope that stabilization to the markets is returning.

According to reports, US private sector employers shed 203,000 jobs in October, which is significantly fewer than the revised figure of 227,000 jobs lost the month before. The September fall had initially been reported at 254,000.

The October private job loss marked the smallest fall since July last year.

Economy

While economists don't expect job growth to take place until 2010, the report, based on findings from economists surveyed by Reuters on behalf of ADP Employer Services, is being seen by some analysts as a proxy for the government’s closely watched report on non-farm payrolls.

Meanwhile, analysts previously polled by Reuters had projected US payrolls as likely to shrink by 175,000 in October, compared with a 263,000 decline in September.

Still, the report does suggest some good news. Not least the fact that the findings help to bolster ADP's previous data that the pace of private job losses has slowed significantly since the 736,000 drop in March.

What's more, a further and independent report has also shown that American companies planning to make layoffs last month had slowed for the third consecutive month to a 19-month low.

The full report is at the New York Times.

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