ADP Research Institute has released a new report about the private employment sector in the United States, and the figures are about as grim as they could possibly be. Owing to state lockdowns, consumer deflation, and social distancing mandates in the wake of the coronavirus outbreak, April saw private payrolls in the U.S. shave 20.2 million jobs in a single month – the single worst drop in the history of the ADP report.
“Private payrolls hemorrhaged more than 20 million jobs in April as companies sliced workers amid a coronavirus-induced shutdown that took most of the U.S. economy offline, according to a report Wednesday from ADP,” reports CNBC.
“In all, the decline totaled 20,236,000 — easily the worst loss in the survey’s history going back to 2002 but not as bad as the 22 million that economists surveyed by Dow Jones had been expecting. The previous record was 834,665 in February 2009 amid the financial crisis and accompanying Great Recession,” the report continued.
Ahu Yildirmaz of the ADP Research Institute put a fine point on how disastrous the job figures really are.
“Job losses of this scale are unprecedented,” said Yildirmaz. “The total number of job losses for the month of April alone was more than double the total jobs lost during the Great Recession.”
Unfortunately, many of the job losses are being seen in the small business sector, forewarning an even gloomier future for the nation’s entrepreneurs.
From The New York Times:
All the forecasts point in the same direction: A wave of small-business bankruptcies is coming.
More than 40 percent of the nation’s 30 million small businesses could close permanently in the next six months because of the coronavirus pandemic, according to a poll by the U.S. Chamber of Commerce.
“It’s a crisis that will impact our economy for generations,” said Amanda Ballantyne, executive director of Main Street Alliance, an advocacy group for small business. “We’re going to lose so much of the small-business sector.”
It’s impossible to put any good spin on these figures, especially when we have no idea when or if the coronavirus will be out of our lives. Even with states reopening their economies, there is far from any guarantee that people will get out and shop, dine, and spend the way they were before the pandemic hit. Indeed, it’s far more likely that we’ll see continued distancing, regardless of what state governors are saying. As long as the infection numbers keep ticking up, many Americans are going to stay home as much as possible.
And seeing as how some 30 million Americans are now relying on unemployment insurance for their only income, the amount of discretionary income they have to spend is going to be extremely limited in any case.
If any country can power through an economic recovery of the size and scale facing us, it is the free-market-based United States of America, and if there is any president who can lead us through the darkness, it is the capitalist superstar known as Donald J. Trump. The worst possible thing we could do at this time is put a Democrat in the White House. Let’s hope we don’t compound a dreadful turn of fate with a blisteringly-stupid electoral response in November.
It could be the nail that finishes off the coffin.