Published: Wednesday, 4 Nov 2009 | 7:36 AM ET

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Private employers shed 203,000 jobs in October, fewer than a revised 227,000 jobs lost in September, a report by a private employment service said Wednesday.

CNBC.com

The September fall was originally reported at 254,000.

The median of estimates from economists surveyed by Reuters for the ADP Employer Services report, jointly developed with Macroeconomic Advisers, was a decline of 190,000 private-sector jobs last month.

"I'd characerize this as grudging improvement," Joel Prakken, chairman of Macroeconomic Advisors, told CNBC. "The pace of the improvement I think is a reflection of the fact that the economy's turnaround has been somewhat grudging as well."

A separate report showed planned layoffs at U.S. firms fell for a third straight month in October to a 19-month low, feeding hopes the labor market will continue to improve as economic activity rebounds.

Possible Stabilization

U.S. companies reduced jobs in October at the slowest pace in more than a year, suggesting some stabilization in the labor market as the economy emerges from recession, the ADP report showed.

The September fall was originally reported at 254,000.

The October private job loss was the smallest since July 2008.

The ADP figures are seen by some analysts as a proxy for the government's closely watched report on non-farm payrolls.

The U.S. Labor Department will release its October labor report Friday at 8:30 a.m.

Analysts polled recently by Reuters projected U.S. payrolls likely shrank by 175,000 in October, compared with a 263,000 decline in September.

Economists do not expect job growth to take place until 2010.

Still, the pace of private job losses has slowed since the 736,000 drop in March, according to ADP data.

Planned Layoffs Off

Planned job cuts announced by U.S. employers fell to 55,679 in October, down 16 percent from 66,404 in September, according to a report released Wednesday by global outplacement consultancy Challenger, Gray & Christmas.

The October job cuts were the lowest since March 2008, when employers said they would shed 53,579 workers, and the October numbers are 51 percent below the year-ago announced layoffs.

For the year through October, announced job cuts are up 36 percent from the prior-year period, at 1.19 million. The total announced layoffs this year are just 31,406 shy of last year's total of 1.22 million.

John Challenger, chief executive of Challenger, Gray, cautioned that the employment market recovery will not be as swift as its fall.

"Companies will, at first, be very cautious not to over-hire, in case this recovery is not sustainable. Even when the pace of job creation accelerates, it simply will take a lot of time to reabsorb all of these displaced workers," he said in a statement.

Planned layoffs in October were driven by the automobile industry, with 13,420 announced layoffs. The sector, with a total of 164,440 planned layoffs this year, may see more downsizing in 2009, the report said.

Government and non-profit entities rank second in year-to-date payroll reductions, with announced layoffs of 160,434 workers. The sector is poised for more cuts as many state and local governments grapple with hefty budget deficits.

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