Job losses high in July, but pace of cuts slowing

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Smaller businesses again had the most cuts, according to unemployment report.Private-sector employers shed 371,000 jobs in July, with small and midsize businesses again bearing the brunt of the cuts, according to ADP’s National Employment Report, released Wednesday morning.

While job losses remain high, the pace of cuts fell from last month’s results, according to the report, prepared by ADP, the Roseland-based payroll processing firm, and Macroeconomic Advisers LLC.

Businesses with fewer than 50 workers lost 138,000 jobs in July, while midsize firms employing between 50 and 499 dropped 159,000 jobs, the report said. Payroll at large firms with at least 500 employees declined by 74,000 positions, continuing a trend where smaller companies have borne the brunt of job losses.

“July’s employment decline was the smallest since October of 2008, and continues the notable improvement between the first and second quarters of 2009,” said Joel Prakken, chairman of Macroeconomic Advisers.

Businesses of all sizes cut a total of 463,000 jobs in June, according to the report, which is based on ADP payroll data from 400,000 U.S. business clients and 23 million U.S. employees. In that month, small companies shed 169,000 employees, midsize firms axed 203,000 and large companies lost 91,000 employees.

Even though the broad economy shows some signs of stabilizing, employment tends to trail a recovery and is “likely to decline for at least several more months, albeit at a diminishing rate,” Prakken added.

E-mail Martin C. Daks at [email protected]