Employers Eliminated More Than 20 Million Jobs in April, Report Says
WASHINGTON – U.S. private sector employers cut 20.2 million jobs from their payrolls in April, a stunning sign of just what the coronavirus outbreak has done to the economy in a relatively short time.
In a report released Wednesday, ADP, the payroll processing company, says no single sector of the economy has been untouched by the pandemic.
The deepest cuts came in the leisure and hospitality sector, which shed 8.6 million workers last month.
Utilities and trade and transportation related companies cut 3.4 million from their payrolls, while construction firms let 2.5 million go.
Manufacturers trimmed about 1.7 million from their payrolls, and the health care sector shed about 1 million jobs.
More than half of April’s job losses came from smaller companies with 500 workers or fewer. But larger employers cut 8.9 million jobs.
If there was one bright spot in Wednesday’s report, it was in the area of education service, which saw a modest gain of about 28,000.
The ADP report comes two days ahead of the official monthly job figures from the U.S. Labor Department.
Economists believe the Friday report will reveal unemployment in the U.S. stands at about 16%, up from 4.4% in March.