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ADP National Employment Report: Private Sector Employment Decreased by 20,236,000 Jobs in April

Private sector employment decreased by 20,236,000 jobs from March to April according to the April ADP National Employment Report.  The report utilizes data through the 12th of the month.  The NER uses the same time period the Bureau of Labor and Statistics uses for their survey.  As such, the April NER does not reflect the full impact of COVID-19 on the overall employment situation.

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ADP -2Broadly distributed to the public each month, free of charge, the ADP National Employment Report is produced by the ADP Research Institute in collaboration with Moody’s Analytics.  The report, which is derived from ADP’s actual payroll data, measures the change in total nonfarm private employment each month on a seasonally-adjusted basis.

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April 2020 Report Highlights*

Total U.S. Nonfarm Private Employment:     -20,236,000

By Company Size

– Small businesses:     -6,005,000

  • 1-19 employees     -3,361,000
  • 20-49 employees     -2,644,000

– Medium businesses:     -5,269,000

  • 50-499 employees     -5,269,000

– Large businesses:     -8,963,000

  • 500-999 employees     -1,342,000
  • 1,000+ employees     -7,621,000

By Sector

– Goods-producing:      -4,229,000

  • Natural resources/mining     -78,000
  • Construction     -2,477,000
  • Manufacturing      -1,674,000

– Service-providing:     -16,007,000

  • Trade/transportation/utilities     -3,440,000
  • Information     -309,000
  • Financial activities     -216,000
  • Professional/business services     -1,167,000
         – Professional/technical services     -54,000
         – Management of companies/enterprises     6,000
         – Administrative/support services     -1,120,000
  • Education/health services     -971,000
         – Health care/social assistance     -999,000
         – Education     28,000
  • Leisure/hospitality     -8,607,000
  • Other services     -1,298,000

* Sum of components may not equal total, due to rounding.

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– Franchise Employment**

  • Franchise jobs     -1,082,200

**Complete details on franchise employment can be found here.

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

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 March total of jobs added was revised down from -27,000  to -149,000.

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