A man checks information in front of Illinois Department of Employment Security in Chicago, Thursday, April 30, 2020. Another 3.8 million people filed claims for jobless benefits last week, according to the Labor Department. While that's down from the previous week's 4.4 million, a staggering 30.3 million have applied for unemployment in the six weeks since the coronavirus began taking a wrecking ball to the U.S. job market. (AP Photo/Nam Y. Huh)
By Josh Boak
U.S. businesses cut an unprecedented 20.2 million jobs in April, an epic collapse with coronavirus outbreak closing the offices, factories, schools, construction sites, and stores that propel the U.S. economy.
The Wednesday report from payroll company ADP showed the tragic depth and scale of job losses that left no part of the world's largest economy unscathed. The losses will likely continue through May, with a recovery in hiring likely to begin in the months that follow, said Mark Zandi, chief economist at Moody's Analytics.
"This is one for the record books," Zandi said. "The good news is that we're at the apex of the job loss."
Even though Zandi expects hiring to resume in June as states ease lockdowns, he cautioned that it will be a "slog" over several years to recover all the jobs lost in April.
The private industry 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 a shocking 16%, up from 4.4% in March.
According to ADP, the leisure and hospitality sector shed 8.6 million workers last month. Trade, transportation, and utilities let 3.4 million people go. Construction firms cut nearly 2.5 million jobs, while manufacturers let go of roughly 1.7 million people. The health care sector cut 1 million jobs, but education services eked out a gain of 28,000 as colleges and universities do not appear to have forced significant layoffs that could come later this year.
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. Polling by The Associated Press and NORC Center for Public Affairs Research indicates that nearly eight in 10 households that suffered job losses expect to return to their previous employer.
Chris Beauchamp, Chief Market Analyst at IG International, joins J.D. Durkin to give analysis on the recent trade truce between the U.S. and China. Watch!
Shan Aggarwal, VP of Corporate and Business Development at Coinbase, discusses the company's acquisitio of Deribit as it heads into the S&P 500. Watch!
American businesses that rely on Chinese goods are reacting with muted relief after the U.S. and China agreed to pause their exorbitant tariffs on each other’s products for 90 days. Many companies delayed or canceled orders after President Donald Trump last month put a 145% tariff on items made in China. Importers still face relatively high tariffs, however, as well as uncertainty over what will happen in the coming weeks and months. The temporary truce was announced as retailers and their suppliers are looking to finalize their plans and orders for the holiday shopping season. They’re concerned a mad scramble to get goods onto ships will lead to bottlenecks and increased shipping costs.
Shopping expert Trae Bodge discusses how talks between the U.S. and China is good news for now, but uncertainty remains for back-to-school and the holidays.
Jake Traylor, White House reporter at Politico, joins Cheddar to discuss how Trump is aiming to lower drug prices and how it differs from Biden's approach.
DJ X, alongside Molly Holder, Senior Director of Product Personalization, takes us inside Spotify's A.I. DJ and how it's the best new way to listen to music.
