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