Job Losses Inch Downward, But Less Than Expected
Written by Ken Gaebler
ADP reported fewer job losses in June than in recent months, but more than expected.
Good news for small businesses may still be months away, according to the latest Automatic Data Processing National Employment Report released Wednesday.
The report announced that 473,000 jobs were lost in the private sector in June, a 2.5 percent improvement from the 485,000 jobs lost in May.
Though the number was larger than expected - a Reuters poll of 25 economists in early June predicted 393,000 job cuts - June's job losses were the fewest since October 2008, pointing to a slow but approaching economic recovery.
"The data surprises me a little bit in that the consensus out there seems to be that business is improving and that the economy has hit bottom," Mark Bonhard, investment advisor at Dawson Wealth Management told Reuters.
Considering the stimulus package and increased investor confidence, the slow improvement may seem disappointing. However, employment statistics are lagging indicators, taking longer to reflect economic upturns than statistics such as gross domestic product.
In addition, the June job loss figure is not final - May's loss was downwardly revised from an original report of 532,000.
The ADP also reported that small business job cuts accounted for 177,000 of June's total, down from 184,000 in May.
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