Employment Market Slowest In Four Years

by Darren

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Investors are always looking towards signs of economic health. Certain indicators take on significant meaning. One such factor that can never be ignored is the employment situation. Data being released by ADP shows that the employment market is at its’ lowest point in four years, with hiring off and layoffs surging.

Economists polled by Reuters had forecast a result of 83,000 for August.

The ADP result comes after a separate survey showed planned U.S. lay-offs rocketed in August as the housing slowdown and subprime mortgage debacle led to record job cuts in the financial sector.

Announced lay-offs surged 85 percent to 79,459 in August from 42,897 in July, according to Challenger, Gray & Christmas, an employment consulting firm. August’s job cuts were the highest since February, when they totaled 84,014.

“Nearly half of the August cuts came from the financial sector, as dozens of mortgage and subprime lenders caved under the pressure of a sinking housing market,” Challenger, Gray & Christmas said in a statement.

Of course most of the layoffs came from the financial sector, as several major subprime lenders crumbled in the face of increasing foreclosures. The bankruptcy of American Home Mortgage Investment didn’t help numbers, as a great number of employees lost jobs due to the spectacular flameout.

The official government numbers come out on Friday, but the report from ADP seems to be a good sneak preview of what to expect.

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