June 3, 2009 / 1:54 PM / 11 years ago

UPDATE 1-US firms may cut another million jobs-M. Advisers

* One mln more US jobs may be lost even if growth returns

* Jobless rate should peak in 9.5 to 10.0 pct range

* Auto layoffs not seen as major drag in coming months (Adds quotes, details, byline)

By Richard Leong

NEW YORK, June 3 (Reuters) - U.S. companies may reduce another million or so jobs for the remainder of 2009, even if the economy emerges from recession later this year, Joel Prakken, chairman of Macroeconomic Advisers said on Wednesday.

The U.S. jobless rate will likely peak in a range of 9.5 percent to 10.0 percent in 2010. This compares with 8.9 percent in April — the highest since September 1983, Prakken said in a conference call with reporters.

Earlier, the ADP National Employment Report, which was jointly created by Prakken’s economic research firm and ADP Employer Services, showed the U.S. private sector shed 532,000 jobs in May, greater than analysts’ forecasts.

The ADP data are used by some traders as a predictor of the government’s closely watched monthly payroll figure.

“There is no way this is good news,” Prakken said of the latest data. May’s job losses were “widespread” and heavy in the manufacturing and services industries, he said.

Since the U.S. recession began in December 2007, 5.7 million jobs have disappeared, according to the government.

The median forecast among economists polled by Reuters for the government’s payroll figure is a decline of 520,000 in May, compared with a 539,000 drop in April. [ID:nN02510310]

The Labor Department will release its May employment report at 8:30 a.m. (1230 GMT) on Friday.

The report comes in the wake of a major shakeup in the U.S. auto sector earlier this week. General Motors (GM.N) filed for bankruptcy, while Chrysler said it will sell most of its assets to Italian carmaker Fiat FIA.MI. [ID:nL1393009]

Job losses at two of the “Big Three” carmakers will be “large regional negatives” in U.S. states such as Michigan where GM and Chrysler plants and parts producers are located, Prakken said.

But these auto layoffs, which have been widely expected, will not have a “dominant effect” on the national employment picture, he said. (Reporting by Richard Leong, Editing by Chizu Nomiyama)

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