By Rex Nutting, MarketWatch WASHINGTON (MarketWatch) -- The U.S. private sector shed 250,000 jobs in November, the biggest job loss in six years, according to the ADP national employment index released Wednesday. The loss was right in line with estimates of analysts surveyed by MarketWatch. Job losses increased to 158,000 in the goods-producing sector and to 92,000 in the services. The report comes two days before the government releases its report on the labor market for November, with analysts expecting nonfarm payrolls to decline 350,000, the worst losses in more than 25 years. Employment in small businesses fell by 79,000, only the second decline in the past six years, ADP said. "Falling employment at medium and small firms clearly indicates that the recession has now spread well beyond manufacturing and housing-related activities," said Joel Prakken, president of Macroeconomic Advisers, the economic consulting firm that produces the ADP report from anonymous payroll data. The October ADP index was revised down to a loss of 179,000 from the previous estimate of 157,000. The ADP sample is taken during the same week of the month as the government survey, using similar methodology. Automatic Data Processing , based in Roseland, N.J., provides payroll and human-resources services to about one of every six U.S. workers, at more than 500 companies. In a separate report, Challenger Gray & Christmas reported that corporate announced job cutbacks rose to the highest level in nearly seven years in November, led by massive layoffs at financial firms.

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