Private payrolls declined by 2.75 million in May, a smaller number than feared
Economists and Wall Street execs are left puzzled as to why their predictions for this report were so far exaggerated
June 3, 2020 - 12:54pm
According to a Wednesday morning report by the Automatic Data Processing service, the payrolls of private companies decreased by 2.76 million during May, as a continued result of the coronavirus pandemic.
Large businesses were hit hard, as they reported a decline of 1.6 million workers. Manufacturing companies, specifically, lost 719,000 workers.
Despite the enormity of the number reported, the fell far below the expected number, which some economists feared would hit 8.75 million. A
DP's lower-than-expected number also signals that Friday's Labor Department report will also show a payroll decline with lower than previously anticipated numbers.
ADP's report, which is done in conjunction with Moody's Analytics, has stumped some Wall Street executives, who are trying to figure out why their predictions were so far off the ultimate numbers reported.
The stock market opened high this morning, rising 230 points at the starting bell. Despite a full slate of domestic issues currently in play, the market is headed for a third straight day of gains.
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