33,000 Jobs Cut in August

The private sector lost 33,000 jobs in August on a seasonally adjusted basis, according to payroll manager ADP. A consensus of economists surveyed by Briefing.com had expected a loss of 30,000 jobs.

The August decline included losses of:

• 78,000 jobs among goods-producing companies, the 21st monthly decline in a row.
• 28,000 jobs in August by large companies with 500+ worker
• 25,000 jobs in medium-sized companies with 50-499 employees
• 20,000 jobs in small business with less than 50 workers (after adding 46,000 jobs in July

The service sector, however, gained 45,000 jobs in August.

The report showed a sharp drop-off from July, when the private sector gained 1,000 jobs, spurred by a boost in small business employment.

The U.S. Department of Labor will release its August employment report Friday. A consensus of economists surveyed by Briefing.com expects the unemployment rate to hold steady at 5.7%, while nonfarm payrolls are seen declining by 75,000 after a 51,000 drop in July.

In another separate read on the labor market released Wednesday, employers said they would cut 377,325 jobs from May to August, according to employment consulting firm Challenger, Gray & Christmas, Inc. That is the highest level of summer job cut announcements