ADP: Private sector employment down 20M jobs in April

By
Emily Bader
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Private sector employment was down by more than 20 million jobs between March and April, according to the April ADP National Employment Report by Roseland-based ADP. The report utilized data through May 12, and as such, does not reflect the full impact of COVID-19 on overall employment.

“It is important to note that the ADP National Employment Report is based on the total number of payroll records for employees who were active on a company’s payroll through the 12th of the month. This is the same time period the Bureau of Labor and Statistics uses for their survey,” Ahu Yildirmaz, co-head of the ADP Research Institute, said. “As such, the March NER does not fully reflect the most recent impact of COVID-19 on the employment situation, including unemployment claims reported on March 26.”

The payroll and human services company said in its report that the month saw a 20.236 million-job loss in nonfarm private employment.

There were job losses in all company sizes, ADP said. Large businesses with more than 500 employees lost 8.963 million jobs over the period, while small businesses with less than 50 workers lost 6.005 million and medium businesses with 50 to 499 employees lost 5.269 million.

It was a negative month in both the goods-producing and the service-providing sectors, which lost 4.229 million and 16.007 million jobs, respectively. Franchise employment also saw a loss of 1.082 jobs.

Among industries (which all lost roles):

  • Leisure/hospitality: -8.607 million;
  • Trade/transportation utilities: -3.400 million;
  • Construction: -2.477 million;
  • Manufacturing: -1.674 million;
  • Other services: -1.298 million;
  • Professional/business services: -1.167 million;
  • Education/health services: -971,000;
  • Information: -309,000;
  • Financial activities: -216,000;
  • Natural resources/mining: -78,000.

“Job losses of this scale are unprecedented,” Ahu Yildirmaz, co-head of the ADP Research Institute, said. “The total number of job losses for the month of April alone was more than double the total jobs lost during the Great Recession.

“Additionally, it is important to note that the report is based on the total number of payroll records for employees who were active on a company’s payroll through the 12th of the month. This is the same time period the Bureau of Labor and Statistics uses for their survey.”