ADP Payroll Drop Worst in History

ADP Payroll Drop Worst in History

(AmericanProsperity.com) – ADP Researched released its newest report on Wednesday, and it revealed private companies eliminated just over 20.2 million jobs in April. Companies were forced to let workers go when state governments implemented stay-at-home directives and ordered non-essential businesses to close due to COVID-19. The report only covers the week of April 12. In subsequent weeks of April, the Labor Department said 8.3 million more people filed for unemployment.

Service and hospitality industries were hit the hardest with 8.6 million jobs lost. Trade, transportation, and utilities saw losses totaling 3.44 million. Manufacturing was next in line with 1.67 million.

While everyone is hoping for a quick rebound this summer, signs emerging indicate it could take time for the economy to recover. Large companies are announcing permanent layoffs, including those considered to be temporary nearly a month ago. It’s not just large businesses, either. Small businesses and medium-sized businesses are announcing permanent closures as well.

Uber Technologies announced 3,700 long-term layoffs. Airbnb is letting go of 1,900 permanent positions. Alcoa is laying off 700 workers.

The ADP report is released by the Bureau of Labor Statistics ahead of the unemployment report. Unemployment is expected to rise to 16%, however, estimates have run short since the pandemic began.

~Here’s to Your Prosperity!

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