Productivity rises as US workers see real income cut

Fridays Labor Department unemployment report is expected to show the loss of up to 75,000 jobs in Augustthe eighth consecutive month of losses. Reports on weekly jobless claims (up 15,000 to 444,000, the highest spike in five weeks) and a widely followed survey of private sector employers by Automatic Data Processing (ADP) bolstered expectations that Fridays report would show an increase in the official unemployment rate, currently 5.7 percent nationally.

The ADP survey, which generally underestimates actual job losses, reported that private sector employment fell by a total of 33,000 jobs in August. The goods-producing sector cut 78,000 jobs, including 56,000 jobs in manufacturing, which saw its 24th consecutive monthly decline. The generally lower paying service sector added 45,000 positions in August, ADP reported.

Analysts anticipate a continued slowdown in the US economy as corporations confront higher fuel costs, tighter credit restrictions and signs that demand for exports is slowing due to the global character of the recession. In addition, the housing crisis, growth of unemployment and falling purchasing power are undermining consumer spending.