Payroll services provider ADP delivered a report Wednesday that provided a sobering reminder that the job market remains weak, The Associated Press reports.
ADP said employers slashed 23,000 jobs in March. Economists surveyed by Thomson Reuters had forecast the report would show employers added 40,000 jobs during the month.
The ADP report is seen as an early indicator of the Labor Department’s employment report due out Friday. However, there can be wide variations because ADP only accounts for private-sector jobs.
Economists expect the Labor Department’s report to show employers added 190,000 jobs in March. It would be only the second monthly increase in jobs since the recession began in late 2007. The number could be somewhat inflated because the government hired temporary workers to conduct the 2010 census.
The weak ADP report could temper some expectations for Friday’s data.
Employment growth is considered vital to a strong, sustained recovery because it will give consumers more confidence to go out and spend on goods and services. And consumer spending is the biggest driver of economic activity in the country.
The worse-than-expected jobs report is providing a disappointing end to an otherwise strong first quarter.
