U.S. private payrolls reach low levels on surging coronavirus cases
For the first time in eight months, private companies in the United States posted their sharpest unemployment in December. This could be attributed to an upsurge of new coronavirus cases and its direct impact on businesses, bringing in more pressure on the struggling economy.
After increasing by 304,000 in November, private payrolls diminished by 123,000 jobs last month. This came to be the sharpest level of contraction since April, plunging larger than Reuters’ forecast for an 88,000 decline in December.
According to the ADP National Employment Report, all industries in the United States suffered job losses in December as the coronavirus crisis restricted many consumers and workers. While the report highlighted the weight of the pandemic, recession is not likely since the government managed to seal a stimulus package in December.