The number of workers receiving pink slips each month is finally beginning to tail off, but companies plan to keep laying off workers despite signs of a pick up in the U.S. economy.

Private-sector employers cut 203,000 jobs in October, after eliminating 227,000 jobs the previous month, according to a report out today by payroll giant Automatic Data Processing Inc. and Macroeconomic Advisers LLC, a consulting firm that specializes in economic forecasting.

On a more encouraging note, U.S. companies said they were planning fewer layoffs going forward. Planned layoffs at U.S. firms fell to 55,679 in October, down from 66,404 a month earlier, according to outplacement-consulting firm Challenger, Gray & Christmas Inc. The bulk of the layoffs are expected to come from the auto industry, non-profit firms, and state and local governments.

Though layoffs are beginning to ease, that's still a whole lot of people about to lose their jobs despite a sudden surge in the U.S. economy. Gross domestic product -- the broadest measure of the economy -- expanded at an annualized rate of 3.5% in the third quarter, following four straight quarters of declining economic activity. The rebound had many cheering the end of a painful recession. (Two-straight quarters of negative growth traditionally defines a recession.)

So if happy days are here again, why do the layoffs continue? Historically, companies tend to be wary of turnarounds in the economy and so are slow to react.

John Challenger, chief executive of Challenger, Gray, said in a statement: "Companies will, at first, be very cautious not to over-hire, in case this recovery is not sustainable," he said in a statement.

Employers have even more reason to be cautious of this economic turnaround, because much of it was fueled by government-spending programs, such as the $8,000 first-time home buyer tax credit and "Cash for Clunkers." Many of these stimulus programs have expired, or are about to expire, so it remains to be seen if consumer spending (the greatest driver of economic growth) will pick up enough to sustain the economy's recovery.

Until that happens, workers can expect the layoffs to continue. Those workers who are left behind will be expected to do more with less.

Readers, are you worried about losing your job? Have you had to take on more work because some of your coworkers were laid off this year? Share your stories with me!

Terri Cullen is an award-winning financial journalist. She was one of the original team of editors who helped to launch The Wall Street Journal Online. Terri is also the author of "The Wall Street Journal. Complete Identity Theft Guidebook." Read her bio to learn more about her.

Blog made possible with support from the Corporation for Public Broadcasting.