US private cos cut 5,32,000 jobs in May

The number of unemployed people continued to swell in the world's largest economy as private US companies slashed a staggering 5,32,000 jobs in May.

The latest ADP National Employment Report showed that private American firms cut 5,32,000 last month, much more than expected.

"Nonfarm private employment decreased 5,32,000 from April to May 2009 on a seasonally adjusted basis.

"...The estimated change of employment from March to April was revised by 54,000, from a decline of 491,000 to a decline of 5,45,000," ADP said in a statement today.

According to the report, monthly employment losses in April and May averaged 5,39,000.

"This is a notable improvement over the first three months of the year, when monthly losses averaged 6,91,000," it added.

In May, the goods-producing sector witnessed the loss of 2,67,000, jobs while the manufacturing industry shed 1,49,000, jobs. Large businesses which are defined as those with 500 or more workers, axed 1,00,000 jobs.

Medium-size and small-size entities reduced their headcount by 2,23,000 and 2,09,000 employees, respectively. Medium-size companies are those having 50 to 499 people whereas small-size firms are described as those with less than 50 workers.

"Since reaching peak employment in January 2008, small-size businesses have shed 2,125,000 jobs," ADP said. In May, construction employment dropped 108,000. "This was its twenty-eighth consecutive monthly decline, and brings the total decline in construction jobs since the peak in January 2007 to 1,345,000." the report said.

Employment in the financial services sector dropped 32,000, the eighteenth consecutive monthly decline.

The ADP National Employment Report is based on anonymous payroll data.

Yesterday, official figures showed that jobless rate in the Euro zone -- the grouping of 16 nations which share the common currency euro -- touched a ten-year high of 9.2 per cent in April.

Related terms: construction, currency, economy, employment, euro