Unemployment reports for the private sector in the United States unexpectedly showed a reduction in workers in December due to the uncontrolled transmission of Covid-19 causing the government to impose business restrictions that forced businesses such as restaurants, bars and some services to close.
Private Payrolls has declined by 123,000 jobs last month based on the ADP National Employment Report released just now. This fall is the first drop in private employment since April. Data for September were revised and showed 304,000 jobs added compared to 307,000 jobs reported earlier.
On the other hand, economists even predict private sector employees to increase by 88,000 in December. The ADP report is one of the indicators used by the market to measure the health of the U.S. economy.
This report reflects that there are weaknesses in consumer spending and high layoffs. This indicates that the impact of the Covid-19 pandemic has had a significant impact.
Covid-19 cases in the United States have risen to more than 20 million, with more than 347,000 deaths since the outbreak first appeared in China at the end of 2019. In addition, also influencing this fall was due to the delay in stimulus packages from the government.
The ADP report was released prior to a thorough and comprehensive NFP employment report on Friday. According to a Reuters survey of economists, the NFP reading is expected to increase by 100,000 jobs in December after rising by 344,000 in November.
