In another sign that the economy is stabilizing, a closely watched private report tracking employment found nonfarm private employment fell by 254,000 from August to September 2009.

Farm employment is excluded because of its seasonal fluctuations.

The ADP National Employment Report released today noted that September’s employment decline was the smallest since July of 2009, with employment losses diminishing significantly over the last two quarters.

Nevertheless, while employment is expected to continue to decline for at least several more months, the losses will continue to diminish, according to the report.

Service sector jobs fell by 103,000 while goods producing jobs slipped by 151,000. Manufacturing jobs