A survey of private employment in the U.S. showed a record 742,000 jobs were lost in March, the worst result in the series history.
Economists had been expecting 663,000 jobs lost in the Automatic Data Processing report. The previous month's print was revised to -706k from a previous reading of -697k.
The private employment survey comes ahead of Friday's official nonfarm payrolls report, in which economists expect will show a loss of 658,000 jobs.
"Given our forecast of where GDP is heading¥ I'm expecting to see several more months" of employment declines, said Joel Prakken at Macroeconomic Advisers, immediately following the release.
In an interview with CNBC, Prakken said the employment sector could continue suffering until late summer. "I don't think its going to get notably worse than this," he added, suggesting that the largest declines in GDP occurred in Q4 2008.
The service sector led the way, with a total loss of 415,000 jobs. The goods producing sector shed 327,000 jobs - marking the 27th straight month of decline, while manufacturing lost 206,000, marking three full years of declines in the sector.
Large businesses (with 500 or more employees), lost 128,000 workers, while medium-sized businesses employing 50 to 499 people shed 330,000 jobs, the ADP report said. Employment among small-size businesses, defined as those with fewer than 50 workers, declined 284,000.
This is the fourth month ADP has been using a new methodology, which is intended to provide a more accurate picture of the labour market.
By Stephen Huebl and edited by Megan Ainscow
©CEP News Ltd. 2009