ADP says private sector jobs declined

ROSELAND, N.J., Sept. 1 (UPI) -- Payroll firm Automatic Data Processing said Wednesday the U.S. private sector lost 10,000 jobs from July to August after six monthly increases.

The report comes in advance of Friday's government employment report. Analysts predict that report will show the unemployment rate has risen from 9.5 percent to 9.6 percent.

The ADP report, which does not include government jobs, shows the job market "essentially flat" for the year, said Gary Butler, president and chief executive officer of ADP.

For 2010, the economy has added an average of 37,000 private sector jobs per month, the report said.

Butler said, "Employers require economic certainty and a favorable environment in order to expand their businesses and create jobs. To achieve job growth, our nation's policymakers should take stronger actions to incentivize business to innovate, invest and expand."

Chairman of Macroeconomic Advisers LLC Joel Prakken said the decline "confirms a pause in the recovery already evident in other economic data."

On the month, goods-producing businesses lost 40,000 jobs, while service-oriented businesses added 30,000, ADP said.