Oct ADP Report

Wednesday, October 1, 2008, 8:15 A.M. ET
Nonfarm private employment decreased 8,000 from August to September 2008 on a seasonally
adjusted basis, according to the ADP National Employment Report®. The estimated change in
employment from July to August was revised down from a decrease of 33,000 to a decrease of
37,000.
September’s ADP National Employment Report continues to offer evidence of a weak labor
market. Note that this month, the ADP Report does not reflect two special factors that might
have further depressed employment in September. These are the strike of some 37,000
machinists against Boeing, and job losses related to hurricanes that struck the Gulf Coast.
This month’s employment loss was driven by the goods-producing sector which declined 72,000
during September, its twenty-second consecutive monthly decline. The manufacturing sector
marked its twenty-fifth consecutive monthly decline, losing 48,000 jobs. These losses were
somewhat offset by employment gains in the service-providing sector of the economy which
advanced by 64,000.
Large businesses, defined as those with 500 or more workers, saw employment decline 6,000,
while medium-size companies with between 50 and 499 workers declined 30,000. Employment
among small-size businesses, defined as those with fewer than 50 workers, advanced a moderate
28,000 during the month, after posting an even weaker gain of 17,000 in August.
Two sectors of the economy hit hardest by recent problems in mortgage markets have been
residential construction and financial activities related to home sales and mortgage lending.
Today’s report suggests no lessening of the recent strain on employment in these industries. In
September, construction employment dropped 29,000. This was its twenty-second consecutive
monthly decline, and brings the total decline in construction jobs since the peak in August of
2006 to 409,000. Employment in financial activities advanced just 4,000 during the month.