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Private payrolls dropped by more than 20 million in April as the economy ground to a halt due to lockdown orders that caused businesses to close their doors and hemorrhage employees. U.S. companies lost a total of 20,236,000 jobs last month, according to data released Wednesday by the ADP Research Institute. The total easily beats the …
Private payrolls dropped by more than 20 million in April as the economy ground to a halt due to lockdown orders that caused businesses to close their doors and hemorrhage employees.
U.S. companies lost a total of 20,236,000 jobs last month, according to data released Wednesday by the ADP Research Institute.
The total easily beats the previous record of 834,665 lost jobs in February, 2009 during the Great Recession, but is still less than the 22 million payroll drop economists predicted for April.
Since state governments began implementing social distancing measures roughly six weeks ago, more than 30 million people have filed for unemployment benefits.
The staggering drop in payrolls is “not a surprise,” said James Bullard, president of the Federal Reserve Bank of St. Louis, but he added that unemployment “can come down under double digits by year end” if economic stimulus measures are able to curb the damage and the spread of the pandemic is controlled.
Services and hospitality businesses were hit particularly hard by the social distancing measures and lockdown orders issued by many governors, with bars, restaurants, and other businesses in the sector cutting 8.6 million jobs. Manufacturing jobs dropped their payrolls by 4.3 million.
Businesses with 500 or more employees saw the most losses, eliminating a total of 9 million jobs, while businesses smaller than that slashed 11.3 million positions.
Only two sectors added jobs in April: education added 28,000 positions and company and enterprise management added 6,000.
The April jobs report that will be released Friday by the Labor Department is expected to be one of the most dismal ever, although the Trump administration has expressed hope that the economy could recover in the latter half of the year once businesses are allowed to reopen.
