Indiana Grain Company, LLC

Posted: 07/02/09

By: tomgrisafi

The pace of U.S. job losses has slowed but the labor market is expected to remain weak, according to reports released overnight.

Automatic Data Processing, a payroll processing firm, said private sector employers cut 473,000 jobs in June, a 2.5% improvement from the revised 485,000 drop in May.

The June job cut total was more than expected. Economists surveyed by Briefing.com had forecast a loss of 394,000 jobs last month.

However, the May tally was revised lower. ADP originally reported a loss of 532,000 private-sector jobs in May

While the economy has shown some signs of stabilization, unemployment is likely to remain high "for at least several more months," according to ADP. However, the firm said that the pace of the decline in the job market has slowed.

"We are not shedding jobs as rapidly, but the labor market is still in a state of decline," said Joel Prakken, an ADP spokesman and chairman of Macroeconomic Advisers, LLC.

Looking ahead, Prakken said he expects additional job losses of between 800,000 and 1 million by the end of the year.

Source: CNN, CNN Money