More than 40 million Americans have applied for jobless benefits over the past two months, thanks to the COVID-19 pandemic and shutdowns. Last week alone, 2.1 million new claims got filed. So how is it possible that ADP projects that the US economy lost only 2.76 million jobs in the whole month of May?
Did America go back to work while escaping everyone’s notice? Or, more accurately, did less of America leave work than everyone assumed?
Private sector employment decreased by 2,760,000 jobs from April to May according to the May 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 May NER does not reflect the full impact of COVID-19 on the overall employment situation.
Broadly 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.