US private sector shed 250,000 jobs in November: ADP

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The US private sector lost 250,000 jobs in November, the largest decline in six years, in a further indication of a tightening labor market amid recession, according to a private payrolls report Wednesday.

The job loss was again driven by the goods-producing sector, which posted its 24th consecutive monthly decline in November, the ADP National Employment Report said.

It was the "largest decrease in private sector employment since November of 2002," according to the report.

Nonfarm private employment decreased 250,000 from October to November on a seasonally adjusted basis, it said. The decline exceeded analysts' consensus forecast of a 200,000 drop.

ADP revised upward the October jobs loss to 179,000 from a prior estimate of 157,000, following a September decline of 26,000.

The November jobs decline "offers evidence of a labor market that continues to weaken," the report said.

The Labor Department will issue its nonfarm payrolls report on Friday and analysts expect major job losses in November.

This year, the US economy has shed 1.2 million jobs, and president-elect Barack Obama warned millions more could be lost next year without urgent action.

Obama had announced plans to create 2.5 million new jobs as he forged ahead in his bid to shore up the flagging economy before his January 20 inauguration.

The Federal Reserve has warned the jobless rate could climb to 7.6 percent in 2009 as the economy struggles with a recession amid global financial turmoil.

A private panel of US economists charged with the official designation of business cycles, the Business Cycle Dating Committee of the National Bureau of Economic Research (NBER), said it had determined the world's largest economy has been in recession since December 2007.

Although a recession is generally defined as two consecutive quarters of declining activity, the panel has its own criteria for determining a downturn.

US President George W. Bush's administration acknowledged the NBER conclusion and said it has been working to foster recovery.