US Job Worries Continue – Labor Report

October 07 00:00 2011

New York, October 7 (RainbowNewsLine.com) – The current high unemployment rate continues unabated even though more workers were hired by US businesses in September as compared to August, according to a report Wednesday. The negative labor market trend was accentuated by the increase in layoffs in September and the reluctance on the part of services businesses to hire more workers despite the sector’s relatively strong growth, according to separate reports.

According to an estimate provided by a consulting firm, payroll processor Automatic Data Processing Inc. and Macroeconomic Advisers LLC, 91,000 jobs were added by private-sector employers last months against 89,000 in August. The government’s official jobs numbers which will be announced on Friday is likely to show only a modest gain in September employment because no new jobs were added on balance in August.

The ADP report, according to Paul Ashworth an economist with research firm Capital Economics, is likely to ease fears that the US is heading into another recession. He, however, noted that it provides little indication that the recovery was gaining steam.

Ashworth added that “Seeing numbers hold up, even if they’re holding up at a relatively weak level, is encouraging. It just shows how bad expectations have gotten that we’re happy” with such a weak figure. He said that a report that showed a sharp rise in layoff announcements in September was even more worrying.

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