Small Business Finance News
ADP Report Shows Significant Decrease In Employment
Written by Jenna Weiner
Published: 3/31/2010
A new report from ADP shows that jobs from private U.S. employers dropped by 23,000 in March.
A new report from Automatic Data Processing and Macroeconomic Advisers shows that total employment in the private sector decreased by 23,000 between February and March.
The ADP National Employment Report measures the change in total nonfarm private employment for each month, and is created using actual payroll data.
The news for small businesses was unfavorable, with a decrease of 12,000 jobs in March reported for companies with payrolls between one and 49 employees.
For "medium" businesses - defined as those with payrolls between 50 and 499 employees - the decrease was 4,000.
"American businesses are on the cusp of recovery, yet this report shows that they remain hesitant to increase their payrolls," said ADP president and CEO Gary Butler. He called the federal HIRE Act and similar incentives "necessary to expand payrolls and reverse the trend in private sector employment."
The numbers from ADP led to a lower open on Wall Street Wednesday morning. According to Reuters, the report deflated hopes for the strong recovery economists were expecting.
Even more emphasis was put on the report because the U.S. stock market will be closed for the Good Friday holiday when nonfarm payroll data is released.
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