ROSELAND, N.J., July 10, 2020 /PRNewswire/ -- Insights
derived from ADP's anonymized and aggregated payroll data
enabled economists and academia to model the effects of COVID-19 on
the labor market. At the State of the Labor Market Summit
2020, hosted virtually by ADP Research Institute (ADPRI)
on June 25, top economists and
scholars came together to discuss a range of impacts to better
understand the severity of the crisis on the labor market including
the effectiveness of the first response of programs, the
productivity and viability of businesses and the dynamics of the
lockdown policies. The Labor Market Summit's annual forum, now in
its fourth year, gathers distinguished experts in the field of
labor economics to discuss the state of the U.S. labor market and
research findings derived from ADP's unique data sets. To close the
Summit, economists from ADP Research Institute, Massachusetts Institute of Technology (MIT), Moody's Analytics and the University of Chicago participated in an engaging
panel discussion, moderated by CNBC anchor, Sara Eisen.
"The speed and magnitude of the deterioration of the labor
market, especially during the early weeks of the pandemic, were
unprecedented, and from a research perspective there is so much to
uncover," said Ahu Yildirmaz, co-head of the ADP Research
Institute. "When we first launched this event, we wanted to
establish a premier forum to share labor market trends based on
ADP's anonymized and de-identified data. Since then numerous
studies were conducted, including the most recent resulting paper
that uncovered the evolution of the U.S. labor market during the
beginning of the pandemic."
"We understand the value of sharing our unique labor market data
assets for the public good and therefore collaborate with key
policy makers and labor economists on various papers based on ADP's
data," said Matthew Levin, chief
strategy officer of ADP. "Through our work with these scholars and
this forum, we continue to discover reliable and economic
indicators and unearth crucial findings that bring greater
awareness to the economy at large."
The State of the Labor Market Summit 2020
Now in its
fourth year, the Summit was held virtually and included scholars
who shared findings related to the impact of COVID-19 on labor
markets. Specifically, research from ADP Research Institute,
Massachusetts Institute of Technology,
Princeton University, University of Chicago and others discussed at the
Summit included:
- A paper titled, "U.S. Labor Market during the beginning of the
Pandemic Recession" that used ADP's weekly, anonymized
administrative payroll data to uncover the evolution of the U.S.
labor market during the first three months of the COVID-19
pandemic, and that employment losses have been concentrated
disproportionately among lower wage workers.
- An assessment of how the Paycheck Protection Program (PPP)
impacted the probability that workers remained employed with their
pre-COVID-19 employers during and after the pandemic, as well as
the probability that those employers remained solvent and
operational during and after the pandemic.
- An evaluation of employment and income effects of expansions in
overtime coverage for salaried workers by analyzing state and
federal changes using detailed, anonymized administrative payroll
data. The study found that companies responded by bunching workers'
earnings at the new exemption threshold.
- The impact of lockdown policies and how mandated business
closures and shifts in consumer demand could potentially affect the
composition of jobs and the productive capacity of the U.S.
Highlights from the State of the Labor Market Panel
Discussion
During the State of the U.S. Labor Market panel
discussion moderated by anchor of CNBC's "Closing Bell"
Sara Eisen, panelists shared their
perspectives on how globalization may be impacted by the pandemic,
and how trade, immigration and foreign investment that were already
threatened could continue to experience risk with the lack of
travel, impacted industries and unemployment.
Despite the challenging labor market, the panel highlighted
bright spots, including the effectiveness of additional incentives
made available to help elevate the economic impact of COVID-19. The
panel discussion also touched on how poverty fell during the
pandemic, that the PPP caused a rebound in employment in smaller
firms and how credit problems, mortgage defaults and credit card
delinquencies were also more muted than feared.
For additional information on ADP Research Institute, and to
view a recording of the panel discussion on The State of the U.S.
Labor Market, visit here.
ABOUT ADP RESEARCH INSTITUTE:
The mission of
the ADP Research Institute is to generate data-driven
discoveries about the world of work, and to derive reliable
economic indicators from these insights. We offer these findings to
the world at large as our unique contribution to making the world
of work better and more productive, and to bring greater awareness
to the economy at large.
ABOUT ADP (NASDAQ: ADP):
Designing better
ways to work through cutting-edge products, premium services and
exceptional experiences that enable people to reach their full
potential. HR, Talent, Time Management, Benefits, and Payroll.
Informed by data and designed for people. Learn more
at ADP.com
ADP, the ADP logo, and Always Designing for
People, and ADP Research Institute are registered
trademarks of ADP, Inc. All other marks are the property of
their respective owners.
Copyright © 2020 ADP, Inc. All rights reserved.
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SOURCE ADP, Inc.