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December job losses hit service sector hard

Talk about a broad-based recession.

Automatic Data Processing Inc.'s national employment report released Wednesday shows that private-sector employment fell by 693,000 in December.

No size was spared: From small to large, all shed jobs.

"Sharply falling employment at medium- and small-size businesses clearly indicates that the recession has now spread well beyond manufacturing and housing-related activities," said Joel Prakken, chairman of Macro­economic Advisers, which develops the monthly report for Automatic Data Processing Inc.

Manufacturers continued to suffer large losses. But hardest hit was the service sector, to the chagrin of service-oriented economies like Florida's. With retail reeling, the service sector lost 473,000 jobs last month. As of November, Florida's unemployment rate had risen to 7.3 percent, with Tampa Bay area unemployment at 7.8 percent.

The report, which was worse than expected, is seen as a precursor to national unemployment data being released Friday by the Labor Department.

The report is drawn from payroll data and measures the change in nonfarm private employment each month.

ADP's December jobs report

December was not kind to any size business, small, medium or large. All shed thousands of jobs.

Total employment– 693,000
Small businesses*– 281,000
Medium businesses**– 321,000
Large businesses***– 91,000
Goods-producing sector– 220,000
Service-providing sector– 473,000
Manufacturing industry– 120,000

* payrolls with 1-49 employees, ** payrolls with 50-499 employees, *** payrolls with more than 499 employees

December job losses hit service sector hard 01/07/09 [Last modified: Wednesday, January 7, 2009 7:39pm]
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