U.S. job cuts higher than expected

Two sets of statistics released Wednesday suggest American employers cut more jobs than expected in August but plan fewer layoffs in future than previously estimated.

Payroll processing firm Automatic Data Processing said private firms cut 10,000 jobs.

Economists had expected employers to add 13,000 to 19,000 jobs in August after hiring 37,000 people in July.

A separate report from outplacement firm Challenger, Gray and Christmas Inc. indicated companies' announced plans for future job cuts plunged to 34,768 during the month, a drop of 17 per cent and a 10-year low.

The drop followed three straight months of increases.

The ADP report is often considered a gauge for the government's monthly employment report, which is due out Friday. The Labor Department's data also includes government employment so it is a broader reading on the jobs market.

Economists expect the government report to show 100,000 jobs were cut last month, but that was largely because temporary census workers were laid off. Private employers likely added just 41,000 jobs last month.

Overall, the unemployment rate is expected to have climbed to 9.6 percent last month from 9.5 percent in July.