Job losses decline as unemployment might be bottoming out

09.04.09
By Timothy Jones

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Although many Americans are still losing their jobs it appears that the numbers are at least leveling off which means that many might be back to work soon and be able to make payments to their credit card debt and home loans.

According to the most recent statistics from ADP, nonfarm private employment fell 298,000 from July to August - the smallest decline since September of last year.

The ADP National Employment Report also revised its figures for June, finding that 360,000 jobs were lost, not the 371,000 that it originally reported last month.

Still, the 298,000 jobs lost in July is more than what Wall Street analysts had predicted and shows that while some economic indicators show the economy improving, jobs are yet to follow suit.

Joel Prakken, chairman of Macroeconomics Advisers, the group that puts together the data for the ADP report, told MarketWatch that there has been a downward trend in job losses in 2009 and predicts that if the trend continues, there will likely be job growth heading into 2010.

"There is a gradual improvement underway," Prakken said.

When jobs do start to return, it's likely that the manufacturing sector will see the first growth. According to the ADP report, the manufacturing industry lost 74,000 jobs in July, the smallest drop in a year.

While the ADP report does not factor government jobs into its figures, the jobless might get a boost from government hiring in the coming months.

The Washington Post reports that a government survey which will be released later this week indicates that some 270,000 "mission critical" jobs will need to be filled in the next three years as those in the baby boomer generation reach retirement age. All told the report says over the four years of the Obama administration, about 600,000 government jobs will need to be filled.

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