Private-sector employment fell by 2.76 million jobs in May compared to April, according to data from the ADP National Employment Report released today. However, this is a slowdown from the loss of about 19.6 million jobs in April.
“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.”
May’s jobs decline was well below forecasts from economists surveyed by Econoday, who expected a loss of 8.66 million, MarketWatch reported.
Large businesses lost 1.6 million jobs, midsize firms lost 722,000 and small companies decreased employment by 435,000.
Service-providing jobs fell by 1.97 million, led by a loss of 826,000 jobs in trade/transportation/utilities and 307,000 in “other services.” On the bright side, education added 166,000 jobs while administrative/support services added 40,000.
The goods-producing sector lost 794,000 jobs, including 719,000 in manufacturing. Jobs in natural resources/mining fell by 52,000; construction jobs fell by 22,000.