The Decline in US ADP Employment Slowed in May

Posted Wednesday, June 3, 2020 by
Skerdian Meta • 1 min read

Employment has declined in March and April the the US, as everywhere else in the world, with ADP non-farm employment posting a massive decline in employment of more than 20 million people in May. Expectations were for another big decline of around 9 million people during May, but last month’s numbers came out much better, showing that the US economy was starting to get back to its feet as the country was reopening. But with protests all over the US now, I don’t think that June will be as good as previously expected. Below is the ADP report for May:

US ADP Non-Farm Employment Report

  • ADP May employment -2760K vs -9000K expected
  • Prior was -20,236K (revised to 19,557K)
  • Goods producing -794K
  • Service providing -1967K

These are far fewer job losses than expected but the market reaction has been close to nil. ADP has been having a tough time counting the losses. I’m not sure it tells us anything about Friday’s non-farm payrolls report but if it does, it’s a good sign. Meanwhile, the services were a bit better as well in May.

Markit Services PMI report

  • May final services PMI 37.5 vs 37.3 expected
  • Prelim reading was 36.9
  • April final services PMI was 26.7
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