Though employers shed another 371,000 jobs last month, that marks the smallest one-month drop since October of last year, according to the latest ADP National Employment Report, a monthly publication of the firms Automatic Data Processing and Macroeconomic Advisers, LLC.
NPR's Frank Langfitt notes that employment is a "lagging indicator," and that the researchers who produce the ADP report caution that even if the recession ends soon it could be months before the labor market starts to pick up:
He also reports that another survey out today, from the outplacement firm Challenger Gray and Christmas, underscores the still-weak employment outlook. The firm said firms announced plans to eliminate 97,373 more jobs in coming months — a 31% increase from June. Those are plans, not actual cuts.
The Bureau of Labor Statistics' official figures on the July unemployment rate and jobs market are due Friday at 8:30 a.m. ET. They will be posted here.
President Barack Obama is due to talk about the economy again around 11:55 a.m. ET. He'll be in Wakarusa, Ind.
If you like to read along, here's Frank's script:
The job market isn't growing yet. But at least it's decline is slowing.
That's the major message from the ADP National Employment Report.
ADP — a business services firm — says the July job loss is a clear improvement over earlier months. Between April and June, monthly employment losses averaged nearly half a million, according to the survey.
In economic terms, jobs are what's know as a lagging indicator. That means that even after a recession ends, companies will continue to layoff workers.
ADP said it expects several more months of decline before the labor market actually begins adding jobs. The country will get a clearer picture of employment on Friday, when the Labor Department releases its figures for July.