ADP: Private sector employment down 2.76M jobs in May

Private sector employment decreased by nearly 2.8 million jobs between April and May, according to the May ADP National Employment Report by Roseland-based ADP.

The report used data through May 12 and as such, does not reflect the full impact of COVID-19 on overall employment.

“The impact of the COVID-19 crisis continues to weigh on businesses of all sizes,” Ahu Yildirmaz, co-head of the ADP Research Institute, said. “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 report by the payroll and human services company said the month saw a 2.76 million-job loss in nonfarm private employment.

There were job losses in all company sizes and sectors, ADP said.

Large businesses with more than 500 employees lost 1.604 million jobs during the period, while medium businesses with 50 to 499 employees lost 722,000 positions and small businesses with less than 50 workers lost 435,000.

It was also a negative month for the goods-producing and service-providing sectors, which both experienced losses (794,000 and 1.967 million, respectively).

Among industries:

  • Natural resources/mining: -52,000;
  • Construction: -22,000;
  • Manufacturing: -719,000;
  • Trade/transportation/utilities: -826,000;
  • Information: -115,000;
  • Financial activities: -196,000;
  • Professional/business services: -250,000;
  • Education/health services: -168,000;
  • Leisure/hospitality: -105,000;
  • Other services: -307,000;
  • Franchise jobs -254,100.

The data sample represents 460,000 U.S. clients employing nearly 26 million workers in the U.S., ADP said.