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U.S. Private Sector Sheds Record 20.2 Million Jobs in April: ADP

Economic IndicatorsMay 06, 2020 08:18AM ET
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© Reuters.

By Noreen Burke

Investing.com - The U.S. private sector shed a record 20.23 million jobs in April, according to a report by payrolls processor ADP, as measures to contain the coronavirus pandemic continued to devastate the country's economy.

Analysts polled by Investing.com had expected the private sector to have shed 20.05 million jobs last month due to statewide lockdown measures.

March’s figure was revised to show job losses of 149,000 from the decline of 27,000 that was initially reported.

“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. As such, the April NER does not reflect the full impact of COVID-19 on the overall employment situation” the report said.

The ADP numbers come ahead of the Labor Department's nonfarm payrolls report for April on Friday, which includes both public and private-sector employment. That report is forecast to show the unemployment rate rose to 16% last month and that more than 20 million jobs were lost.

That would easily surpass the post-World War Two record unemployment rate of 10.8% reached in November 1982.

But economists at the Federal Reserve Bank of Chicago are estimating that the true rate of unemployment could be between 25.1% and 34.6%.

Ahead of that, Thursday’s jobless claims report is expected to show another surge of new claims for unemployment benefits.

All told, 26.453 million people have filed claims for jobless benefits since March 21, representing 16.2% of the labor force. The economy created 22 million jobs during the employment boom which started in September 2010 and abruptly ended in February this year.

--Reuters contributed to this report

U.S. Private Sector Sheds Record 20.2 Million Jobs in April: ADP
 

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Comments (20)
Joe Ruscigno
Joe Ruscigno May 06, 2020 10:38AM ET
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This can only mean one thing. Buy!
Woraphong Janetanakit
Woraphong Janetanakit May 06, 2020 10:24AM ET
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20.2 unemployment = less payroll => DJIA + 1000
ShreeMeru Enterprises
ShreeMeru Enterprises May 06, 2020 8:57AM ET
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The person who worked tirelessly in the past 2 months without fear of job loss and with more perks is "graveyard man"
Lou Webb
Lou Webb May 06, 2020 8:55AM ET
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recession x depression= rough times
Hank Threefan
Hank Threefan May 06, 2020 8:50AM ET
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Money printer go brrrrrrt ...And that will make everything ok! Not.
Florin Suru
Florin Suru May 06, 2020 8:50AM ET
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Ya... Brrrrrt... and this is how money from future is transferred to present and how country's dept is increasing.
me ish
me ish May 06, 2020 8:50AM ET
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Don't you just love Max Keiser!
Christian Montero
Christian Montero May 06, 2020 8:46AM ET
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Small caps will have very difficult times
Daniel Pliszka
Daniel Pliszka May 06, 2020 8:42AM ET
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Bearish USD?
Rob Sh
Rob Sh May 06, 2020 8:42AM ET
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Are we no longer counting the unemployed prior to the COVID-19 job loss statistics? We are looking at over 30+ million unemployed Americans at this time - that's more than the entire population of Australia without work. Companies dumping dividends, outlooks and spitting out terrible financials yet look at the market. Is any of this real?
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rob finch
rob finch May 06, 2020 8:42AM ET
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Tre I don't need to be told not to inject Lysol.
me ish
me ish May 06, 2020 8:42AM ET
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Matt Kay  yep, ignorance and ignoring the blatantly obvious truth at all times! This is how Adolf rose to power
Tre Hsi
Tre Hsi May 06, 2020 8:42AM ET
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rob finch  "Tre I don't need to be told not to inject Lysol."  -- are you sure?  normally I would agree with you on that, until my president started telling people to inject Lysol or take some anti malarial drug to treat the virus that he said was a liberal media hoax and then totally under control and then go ahead and get a test for it because the tests are widely available....
Kaveh Sun
Kaveh Sun May 06, 2020 8:42AM ET
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Tre Hsi that is how my managers are. They r lying to get pay raise,cover up their incompetent and keep their jobs. To be fair, all politicians lie. If u believe in them, what can i say?
Kaveh Sun
Kaveh Sun May 06, 2020 8:42AM ET
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me ish all cr@ppy guys rose into power because of “nationalism”. Nationalism works all the time.
George Chege
George Chege May 06, 2020 8:41AM ET
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So has this news affected the Dollar in any way. Am on sale for EURUSD will it change in any way
me ish
me ish May 06, 2020 8:41AM ET
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USD will strengthen for a week or so as we have the second crash
Andrew Patterson
Andrew Patterson May 06, 2020 8:40AM ET
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most people are headed back to work after mother's Day. construction industry especially!!
Josh Toman
Josh Toman May 06, 2020 8:40AM ET
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you mean adp for April... not march
ismael rubinsky
ismael rubinsky May 06, 2020 8:36AM ET
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and Trump was right, country cannot stop, not to say measures cannot be taken....with lockdown and social distancing virus spread anyway...
Pedro Martins
Pedro Martins May 06, 2020 8:36AM ET
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until a deadly virus comes...by that timr no one will escape not even the so called economy - money...
Tre Hsi
Tre Hsi May 06, 2020 8:36AM ET
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"...with lockdown and social distancing virus spread anyway..."  is that like saying there is no point getting chemo therapy for cancer treatment because the cancer cells will spread anyway?  good to know
Itz Jeff
Itz Jeff May 06, 2020 8:35AM ET
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the private sector sheds 20.23 million jobs, but the FED keeps printing trillions, never doubt the power of the FED. Don't expect this to cause any impact on the dollar.
anony mous
anony mous May 06, 2020 8:35AM ET
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They are not eliminating the problem, but simply postponing it. Someone will have to pay trillions of debt in the next few years
me ish
me ish May 06, 2020 8:35AM ET
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anony mous  yeah, but those trillions won't buy a Big Mac - USD won't be worth any more than toilet paper - buy wheelbarrows - you'll need them to take your near worthless $50 bills to Macdonald's for a Big Mac!
justin namon
justin namon May 06, 2020 8:33AM ET
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So weve won the war?
Rakesh Panchal
Rakesh Panchal May 06, 2020 8:32AM ET
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They talk about april only why they are not talking about all the month people loose jobs from february to april together as per they partly saying months not total
Hanna Christin
Hanna Christin May 06, 2020 8:32AM ET
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"As such, the April NER does not reflect the full impact of COVID-19 on the overall employment situation” the report said.
Francesco Lucchesi
Francesco Lucchesi May 06, 2020 8:31AM ET
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it's time to stimulate more and buy more stocks
Matt Kay
Matt Kay May 06, 2020 8:25AM ET
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Everything is fine. Stock market is socialized now. Fed is printing trillions of dollars and lending it out to corporations. They are also buying corporate bond ETFs as announced yesterday. This all makes sense. Totally normal...
Harry Bosch
Harry Bosch May 06, 2020 8:25AM ET
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Right, point me to where i can buy own printing press.
pimpin pips
pimpin pips May 06, 2020 8:24AM ET
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idk best imo to buy btc
pimpin pips
pimpin pips May 06, 2020 8:23AM ET
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ya so lets all go buy stocks
pimpin pips
pimpin pips May 06, 2020 8:23AM ET
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What else to do with all that stimulus
me ish
me ish May 06, 2020 8:23AM ET
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pimpin pips  buy precious metals miners and crypto - that's where the smart money is going
Jarron Jackson
Jarron Jackson May 06, 2020 8:22AM ET
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Created 22 million jobs since 2010 and lost 26.4 in (6) weeks.... Yikes.
Jermaine .A
Jermaine .A May 06, 2020 8:22AM ET
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In a way it's not really a surprise. This was the weakest economic expansion ever despite being the longest. All the GDP has been fueled by more debt than actual growth. The virus was the pin that burst the bubble, it's only exposed how weak the economy is.
Llewellyn Kruger
Llewellyn Kruger May 06, 2020 8:22AM ET
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Imagine if they listened to Mr Gates and kept the economy locked down until vaccine is developed (keeping in mind that vaccines are not possible for RNA viruses).
Pedro Martins
Pedro Martins May 06, 2020 8:22AM ET
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so what would you do when you get a deadly virus? Keep working to save economy or yourself? keep in mind a dangerous virus will come...and if you dont prepare yourself now...bye bye human beings. That can be a good thing for the planet tough😥😥
 
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