US private cos layoff 5,22,000 jobs in January

Private sector companies in the US slashed a stunning 5,22,000 jobs in January, in yet another indication of the worsening labour market situation.

The latest ADP (Automatic Data Processing Inc) report showed that non-farm private employment on a seasonally adjusted basis, declined 5,22,000 in January 2009.

The ADP National Employment Report is based on anonymous payroll data and is maintained by Macroeconomic Advisers LLC.

In a statement today, ADP said the report for January estimates "non-farm private employment in the service-providing sector fell by 2,79,000".

While the goods-producing sector shed 2,43,000 jobs, the manufacturing industry saw the loss of 1,60,000 jobs last month.

According to the report, large businesses which are defined as those with 500 or more workers, slashed 92,000 jobs. Further, medium-size and small-size entities reduced their workforce by 2,55,000 and 1,75,000 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.

Agencies