400,000 job-losses in U.S. in November

By siliconindia   |   Thursday, 04 December 2008, 23:07 IST   |    1 Comments
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New York: Taking clues from reports showing a dismal employment picture in the private sector, particularly in services, Goldman Sachs has revised up its forecast for U.S. job losses in November to 400,000. Previously, the analysts at Goldman had forecast a decline of 350,000 jobs, while a poll conducted on Friday put it at 320,000. Meanwhile, the Institute for Supply Management's non-manufacturing survey fell to a record low, as did its employment index. "Most reports on employment conditions in November have shown additional weakness relative to earlier months, but today's ISM report on conditions outside manufacturing was particularly noteworthy," said Goldman economists in a research note. "The employment index from this report, which has predictive power for payrolls in the top-down models we have developed, fell more than 10 points from a level that was already the lowest on record for this indicator." The report also cited weakness in small and medium-sized firms as potentially compounding the pain in the labor market.