The figure was in line with expectations for a 30k loss, though forecasts prior to the release were all over the map, ranging from a gain of 15k to a loss of 115k.

The loss of labour was driven by a 78k decline in the goods-producing sector, which has been in decline for 21 months now. Manufacturing also pulled back 56k jobs, marking the 24th month in a row of declines.

Those loses were 'somewhat offset' by gains in the service sector, which advanced by 45k in the month.

Speaking on CNBC, Joel Prakken, chairman of Macroeconomic Advisors, characterized the figures as a part of a long string of weak reports, consistent with a slowing economy that has not yet slipped into recession.

Large businesses - those with 500 or more workers - saw employment decline 28k in the month, while medium-size companies saw a loss of 25k jobs, and employment among small businesses -those with fewer than 50 workers - advanced 20k during the month.

The ADP report said the report suggests "little lessening of the recent strain on employment" in the financial and construction industries. Employment in construction dropped 25k, bringing the total loss of construction jobs since August 2006 to 377k, while employment in financial activities fell 2k in the month.

The ADP figures are the primary tool to forecast the nonfarm payrolls report from the Bureau of Labor Statistics, the benchmark employment figure for the United States, which economists expect to report a drop of 75k on Friday.

By Patrick McGee, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Nancy Girgis, This email address is being protected from spam bots, you need Javascript enabled to view it

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