It’s not exactly “Happy Days Are Here Again”, but private sector employment increased by almost 2.4 million jobs from May to June, according to the June National Jobs Report from ADP published Wednesday, July 1. ).
This is in sharp contrast to a report released in early May by the same source, Automatic Data Processing (ADP) and Moody’s Analytics, which shows massive job losses when the pandemic hit hard. ADP‘s April report showed that private sector companies in the United States lost 20.2 million jobs.
The massive loss of jobs was linked to the pandemic and requests for on-site shelters and associated store closings that swept across much of the country.
Compared to that, things are really improving now.
“Recruitment of small businesses increased in June,” said Ahu Yildirmaz, vice president and co-director of the ADP Research Institute, in a press release. “As the economy continues to recover slowly, we are seeing a significant rebound in the industries that experienced the largest job losses. In fact, 70 percent of the jobs added from May to June were in industries recreation and hospitality, commerce and construction. ”
Depending on the size of the business, small businesses obtained 937,000 jobs. This covers companies ranging from one to 49 employees. In April, these companies lost 6 million jobs.
In June, the smallest businesses, with up to 19 employees, had only 574,000 employees.
For their part, medium-sized businesses with 50 to 499 employees hired 559,000 employees.
Large companies hired 873,000 employees. The largest companies, those with more than 1,000 employees, hired 772,000 employees.
The natural resources and mining industries have lost 26,000 jobs. Another category of job losses is that of business management, which has lost 29,000 jobs.
In April, the services sector was the most affected, with 16 million jobs lost. More than half of this amount came from the loss of jobs in hotels and restaurants.
ADP’s National Employment Report uses ADP’s payroll data, which covers 460,000 American customers who employ nearly 26 million American workers.
As employers add workers by simply keeping what they have, the pandemic has also raised the question of how to pay people when so many Americans work from home.
Laura Valdespino, Director of Compliance Solutions for ADP, told PYMNTS in a recent interview that companies with most or all of the homeworkers have no one at the office to physically cut checks, let alone send them out. by mail.
“How do you pay these screened employees when, traditionally, they gave a physical check at the end of the day?” she asked.
Even if someone comes to pay, “the employees don’t want to wait for the check, they don’t want to touch the check, they don’t want to physically go to the bank to cash the check,” said Valdespino. “And they really don’t want to touch the money.”
As a result, ADP is seeing growing interest from employers in compensating workers who use digital payment systems such as payment cards. “The employers say they want to stop writing checks,” he said. And they can show employees that: “I can safely pay you quickly, in some cases instantly.”