Published May 8, 2020 1:29 pm EST
by Richard Cason, Editor of NewsMovesMarketsForex
United States Non-farm payrolls nose dives and contracts to catastrophic losses of 20.5 million jobs for the month of April 2020. The U.S. Job sectors ‘one by one’ are being savagely pummeled by effect of the (COVID 19) global pandemic. The Unemployment rate inflates to 14.7 percent, the largest single seasonal month increase within the history of United States Labor Statistical Tracking.
Coronavirus (COVI-19) Unforgiving Effect on U.S. Economy
The Coronavirus (COVI-19) Pandemic has unleashed a temporary stranglehold on the U.S. economy. The epidemic has unforgivingly stalled the Labor markets for two straight consecutive months of combined staggering NFP job losses, totaling 21.37 million, through the breadth of North America. The U.S. has a total of 1.32M that have contracted COVID19 and 78,185 deaths from the pandemic as of this date.
President Trump has unequivocally declared himself a wartime President, has made it clear in (COVID 19) press briefings to the Nation,”We need to get open again”. The President advised the Governors in a conference call that “You Can call your own Shots” pontificating that they should establish there own guidelines in reopening the individual states for business again.
The unemployment rate has sky rocketed to a unprecedented 14.7 percent, in which the likes we have never seen climb in one single month. Some economist hypothesize that the country is heading towards an economic recession as business activities wane and unemployment continues to fall off.
The most hardest hit industries have still continued to be the hospitality and leisure sectors which lost 7.7 million jobs in the month of April 2020. Most of the job lost occurred within the food services and drinking places sectors as well as the accommodation industries which contracted (-5. 5 million) in the month of April.
U.S. Economist projected Jobs would decline only by -22 million jobs for the month of April 2020. April Non Farm Payroll numbers paints and undesirable portrait of the U.S. economy and Labor Markets; however, there is still a slight glimmer of light appearing in the horizon, based on the fact that most states will soon be transitioning into reopening for business once again.
According to U.S. Labor Statistic s February’s 2020 NFP release revised down by 45,000 from +275,000 jobs to +230,000 added to the U.S. Jobs market. March was revised down by 169,000 from -701,000 to -870,000. See the full story of previous March 2020 NFP numbers; Non Farm Payrolls Plummets to 701,000 Jobs, UnEmployment ticks higher to 4.4 Percent March 2020
Non Farm Payrolls Jobs Report (MARCH 2020)
 | |||||
|---|---|---|---|---|---|
| Time | Event | Actual | Forecast | Previous | |
| Friday, April 3, 2020 | |||||
08:30 |  USA | Nonfarm Payrolls (FEB) | 20.5 Million | -22 Million | -870K |
| 08:30 | USA | Unemployment Rate (FEB) | 14.7% | 16.0% | 4.4% |
| 08:30 | USA | Private Nonfarm Payrolls (FEB) | -19.52 Million | -21.050 Million | -842K |
| 08:30 | USA | Participation Rate (FEB) | 60.2% | 62.7% | |
| High | Volatility Expected | |
Unemployment rate and ADP National Employment Report
- The unemployment rate moved higher by a blistering (10.3 percent) catapulting to 14.7% for month of April 2020, while the private nonfarm payrolls average hourly earning rose by $1.10 to $30.01, following a $28.62 result in March.
- Bureau of Labor Statistics reports April data that employment contracted in various sectors of Construction employment down 975K, Warehouse trade decreased by 363,000 jobs, Education and Health services declined by 2.5 million, Food Services and Drink Places declined by (-5.5 million jobs) . While the Professional and business services decreased by 2.1 million in the month of April and Retail Trade dropped by 2.1 millon jobs for the Month of April 2020 .
- ADP National employment report: Private sector decreased -20,236,000 Jobs for the month of March to April 2020
- Small Business -6,005,000 National franchise decreased -1,082,200 jobs
- Midsize Business up to -5,269,000 and Large Business increased by -8,963,000 jobs. Which continues to slide down a bottomless rabbit hole at an accelerated pace over the 1st quarter of 2020.
- It is important to note that Nonfarm Payrolls measures the change in the number of people employed during the previous month, excluding the farming industry. Job creation is the foremost indicator of consumer spending, which accounts for the majority of economic activity.
- Additionally, according to the United States Bureau of Labor Statistics …(Please click here to see the previous March 2020 Major Workers Group Data) …The unemployment rates for Major Worker Groups..Adults men 13%, Adult women 15.5%, Teenagers 31.0%, Whites 14.2%, Blacks ticked higher to 16.7%, Asians 14.1%, and Hispanics sky rocketed to 18.0% various groups displayed extreme increase record highs for exception of Blacks.
- Revisions: With these revisions, employment gain in February and March combined were 214,000 less than previously reported.
