The US private sector cut 49,000 jobs

The US private sector cut 491,000 jobs in April to reach the lowest level since November 2008, a report by ADP Employer Services has shown.

The April figure was much lower than analysts’ expectation of 650,000 job cuts and the 708,000 layoffs in March — the latest in a series of data suggesting the prolonged recession might be over.

The data comes one day after US Federal Reserve Chairman Ben Bernanke said he expected the recession would end later this year unless there is a major financial setback.

The ADP report, however, said the job cuts, which have also hit medium- and small-size businesses, indicate ‘the recession continues to spread beyond manufacturing and housing-related activities to almost every area of the economy’.

A rise in consumer confidence and falling home prices have revived hopes that the US economy is on the road to recovery.

Other data, including a 6.1 percent decline in US economy and falling exports in the first quarter of the year, have made analysts cautious about making hasty conclusions regarding the recovery of the world’s largest economy.

The US government will publish the April unemployment and payrolls report on Friday. Economists expect the report will show 620,000 job cuts in April, raising the unemployment rate to 8.9 percent from 8.5 percent.