economy Markets

Small And Midsized Businesses Wiped Out In April, Grim ADP Report Shows

"Job losses of this scale are unprecedented."

In a preview of what's coming on Friday with the April payrolls report, ADP said US firms cut 20.236 million jobs last month. That was slightly "better" than expected - consensus was looking for a decline of 20.55 million. It goes without saying that this print is one for the history books. Last month, ADP cautioned that the figures for March (which initially showed a net loss of 27,000 jobs) utilized data through the 12th of the month, which meant they didn't reflect the impact of COVID-19 on the employment situation. March's figure was revised sharply lower to -149,000. But it doesn't even register (visually speaking) on a chart alongside April's historic debacle. Even as the March report didn't capture the brunt of lockdown effect, the survey period did manage to pick up early signs of the coming storm. Small businesses shed 90,000 positions in March, a preview of the devastation Main Street would suffer over the ensuing weeks. As I wrote at the time, "if there's one key takeaway from the March report, it’s that small, vulnerable companies were rapidly laying off workers even before the lockdown measures proliferated in earnest". Fast forward a month, and businesses wit
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