ADP job losses diminish

Ahead of Friday's labor report by the government, ADP reported nonfarm private employment fell by 371,000 in July, which ADP said was the "smallest since October of 2008 and continues the notable improvement" between 1Q and 2Q.

However, ADP was quick to point out that employment is a lagging indicator and job losses are expected to continue "for at least several more months, albeit at a diminishing rate."

I agree. Companies were quick to begin layoffs when the economy began to slip into a recession at the end of 2007, but are likely to hold off adding to staff in meaningful numbers until they feel confident a recovery is well underway.