Ominous Private Jobs Reports

On Friday, the government will release the September jobs report, and some economists are bracing for the worst: a decrease in overall private employment and an increase in the unemployment rate, more evidence of a persistent stall-out in the recovery.

Two reports released this morning give fuel to those worries. Payroll processing firm ADP said private-sector employers cut 39,000 jobs last month, more than economists expected. In August, the private sector added 10,000 jobs. And a separate report (PDF) from outplacement firm Challenger, Gray & Christmas showed that private and public employers planned to cut 7 percent more jobs in September than in August, though both numbers were near historical lows.

More job cuts, and more planned job cuts. That demonstrates that employers remain loath to add on workers, given the economy-wide lack of demand. And it means the unemployment rate will remain high.