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US Labor Market Appears to Stabilize as Private Payrolls Fall Less Than Expected

Pro-Beijing Groups in Canada Support Hong Kong National Security Law

The Chinese regime’s approval of highly controversial security legislation in Hong Kong that triggered an outcry around the world and mass protests in the territory is being supported by pro-Beijing groups in Canada. The new law, which makes it a crime to undermine Beijing’s authority in the territory, mainly targets four areas: subversion of state power, division of the country, terrorist activities, and interference by external forces. The law, enacted by bypassing the local legislative process, means the end of the “one country, two systems” principle in Hong Kong that has been in place since Britain returned control of the territory to China in 1997, and which was supposed to remain unchanged for 50 years. Groups Side With Beijing As democracy supporters in Hong Kong continue to fight against the…

US Labor Market Appears to Stabilize as Private Payrolls Fall Less Than Expected

WASHINGTON鈥擴.S. private payrolls fell less than expected in May, suggesting layoffs were abating as businesses reopen, though the overall economy’s recovery from the COVID-19 pandemic will be slow.

The ADP National Employment Report on聽 June 3 showed private employers laid off another 2.76 million workers last month after a record 19.557 million in April. Economists polled by Reuters had forecast private payrolls dropping by 9 million in May.

A staggering 25 million private jobs were lost over the past three months. The ADP report is jointly developed with Moody’s Analytics.

“The COVID-19 recession is over, barring a second wave of infections or policy error,” Mark Zandi, Moody’s Analytics chief economist told reporters. “But recovery will be a slog until there is a vaccine.”

US Labor Market Appears to Stabilize as Private Payrolls Fall Less Than Expected

Zandi said there was no evidence yet the government’s Paycheck Protection Program (PPP) was helping the labor market. The PPP, part of a historic fiscal package worth nearly $3 trillion, offers businesses loans that can be partially forgiven if they are used for employee pay.

Stocks on Wall Street opened higher as investors remained optimistic about an economic rebound despite growing social unrest. The dollar slipped against a basket of currencies. U.S. Treasury prices fell.

Though the worst of job losses is probably behind, economists estimate that roughly one in four workers who were laid off or furloughed during the near shutdown of the country in mid-March to control the spread of COVID-19 were unlikely to be rehired. Many bankruptcies are anticipated.

The ADP report was released ahead of the government’s more comprehensive employment report for May scheduled for release on Friday. Though it has a poor record predicting the private payrolls component of the government’s employment report because of methodology differences, it mirrors other labor market indicators in suggesting that layoffs are ebbing.

“The ADP report isn’t always a reliable predictor of the government data, but it suggests that the pace of job loss moderated noticeably between April and May, even though it remained substantial relative to pre-COVID-19 norms,” said Daniel Silver, an economist at JPMorgan in New York.

US Labor Market Appears to Stabilize as Private Payrolls Fall Less Than Expected People work at a jewelry store at the Americana Mall in Manhasset, N.Y., on May 27, 2020. (Stephanie Keith/Getty Images)

“This is a message broadly consistent with some other related signals, and the labor market likely has benefited from the easing of restrictions on activity in many places.”

According to a Reuters survey of economists, nonfarm payrolls probably declined by 8 million last month after plummeting by a record 20.537 million in April.

The unemployment rate is forecast rocketing to 19.8 percent, a post-World War Two high, from 14.7 percent in April.

Recessions in the United States are called by the National Bureau of Economic Research, which does not define a recession as two consecutive quarters of decline in real gross domestic product, as is the rule of thumb in many countries. Instead, the NBER looks for a drop in economic activity, spread across the economy and lasting more than a few months. Economists believe the economy slipped into recession in March.

The ADP report showed job losses across all sectors in May, though within the service-providing sector, administrative services, which include temporary help, and educational services showed employment gains.

By Lucia Mutikani

Focus News: US Labor Market Appears to Stabilize as Private Payrolls Fall Less Than Expected

UK Warns China: Do Not Destroy the Jewel of Hong Kong

LONDON—The United Kingdom warned Beijing on June 2 to step back from the brink over an “authoritarian” national security law in Hong Kong that it said risked destroying one of the jewels of Asia’s economy while ruining the reputation of China. China’s rubber-stamp parliament last week approved a decision to create laws for Hong Kong to curb sedition, secession, terrorism, and foreign interference. Mainland security and intelligence agents may be stationed in the city for the first time. “There is time for China to reconsider, there is a moment for China to step back from the brink and respect Hong Kong’s autonomy and respect China’s own international obligations,” British Foreign Secretary Dominic Raab told parliament. “The sad reality is that if China continues down this track, it will be strangling…