ADP reported a massive decline of over 20 million jobs. Let’s investigate job losses by size of firm.
Earlier today I commented ADP Reports 20 Million Jobs Lost: A Disaster Comparison Three Ways
This is a followup on losses and percentage losses by corporation size.
Nonfarm Private Payrolls March 2020
Nonfarm Private Payrolls April 2020
- Workers at the largest companies got hit the least (13.36%).
- Small firms, especially those with 20-49 employees got hit the hardest (21.47%)
The largest firms were the best equipped to offer work at home.
Also, some large firms like Walmart, Amazon, Kroger, Safeway, and all the food stores were designated critical businesses and stayed open.
Number of Small Businesses
In 2018 the SBA reports there were 30.2 million small businesses with 58.9 million employees.
Millions of small businesses will go bankrupt over this.
Inflation or Deflation?
If you believe all this printing will soon result in inflation, you are mistaken.
For discussion, please see Inflation or Deflation? Collapse in Demand Trumps Supply Shocks
Understanding the Problem
The Fed’s seriously misguided efforts to force inflation into a system begging for deflation is the problem.
Mike Shedlock,/ Mish is a registered investment advisor and a though leader on economics and finance. His “MishTalk” global economics blog is highly read and he posts several articles daily on the global economy. Topics include interest rates, central bank policy, gold, precious metals, jobs, and economic reports from an Austrian Economic perspective. Follow Mish on Twitter or email him.