ADP: May Private-Sector Employment Down 2.76 Million

In the first of three snapshots of employment data this week, ADP, Roseland, N.J., said private-sector employment fell by 2.76 million jobs in May.

ADP cautioned, however, that it uses the same time period as the Bureau of Labor Statistics, with the report period ending May 12; thus, the report does not fully reflect the full impact of the coronavirus pandemic on the overall employment situation.

By company size, large business shed 1.6 million jobs in May; medium-sized businesses (50-499 employees) last 722,000 jobs and small businesses shed 435,000 jobs.

Broken down further, the goods-producing sector lost 794,000 jobs; natural resources/mining 52,000; construction 22,000; manufacturing 719,000; and service-providing: 1,967 million.

“The impact of the COVID-19 crisis continues to weigh on businesses of all sizes,” said Ahu Yildirmaz, co-head of the ADP Research Institute. “While the labor market is still reeling from the effects of the pandemic, job loss likely peaked in April, as many states have begun a phased reopening of businesses.”

The matched sample used to develop the ADP National Employment Report was derived from ADP payroll data, which represents 460,000 U.S. clients employing nearly 26 million workers in the U.S.  The April total of jobs lost was revised from -20,236,000  to -19,557,000.

The Labor Department releases its Initial Unemployment claims report this morning at 8:30 a.m. ET; and its May Unemployment report this Friday, June 5 at 8:30 a.m. ET. MBA NewsLink will provide coverage and analysis.