(ConservativePeak.com)- There is no doubt that the Chinese coronavirus has seriously impacted the United States economy. Before the virus reached America’s shores the U.S. economy was booming, employment was at a record high, and Americans had confidence in the market. That quickly changed once lockdown measures were put in place to protect lives, but data from May shows some sign that the impact may be starting to level off.
According to a report from ADP and Moody’s Analytics released on Wednesday, American businesses shed 2.76 million jobs. It’s a huge number, but it’s less than expected. In fact, it’s significantly better than expected according to economics. Many predicted that ADP private payroll figures would show a loss of up to 11 million, with a minimum of 3.3 million. The median estimate, according to Econoday, was 8.6 million jobs.
What does this mean? Well, it shows that the coronavirus is still impacting American business but that the damage being done isn’t escalating at the rate it was doing in March.
The data also showed how job losses in April were revised. Job losses in that month were smaller than previously believed, but not by much. The figures were adjusted down from 20.2 million to 19.6 million.
All in all, it looks like the labor market is actually in a healthier shape than predicted. That doesn’t mean things are good, but suggests that businesses are fighting the impact of the coronavirus lockdowns better than expected. The better-than-expected numbers are also likely to be a result of many states beginning to reopen their economies in limited ways. In some states, like Colorado and Florida, restaurants and hospitality businesses are opening with limited capacities and other non-essential stores are opening.
This reopening is important as the hospitality industry has been one of the hardest hit. The leisure industry has also been seriously damaged by the lockdown measures, resulting in gyms and fitness centers being forced to close for months. In April, these two industries lost 105,000 jobs.
In coming weeks, job loss numbers are expected to continue declining as the economy levels off and more states start reopening their economies.