S&P 500 cuts headcount for first time
- Bank of America Global Research said employment across S&P 500 companies fell in 2025, the first annual decline since 2016, as large listed firms trimmed payrolls even while broader hiring stayed positive. - The tally put combined S&P 500 headcount at about 28.1 million workers, while ADP reported U.S. private employers added 62,000 jobs in March and large firms added just 4,000. - The split leaves profits rising faster than payrolls: FactSet says the S&P 500 is still tracking 13.2% first-quarter earnings growth, led by tech and financials. (factset.com)
Employment across S&P 500 companies fell in 2025, marking the first annual drop in the index’s combined workforce since 2016. (msn.com) Bank of America Global Research, using data compiled with Bloomberg, put total S&P 500 headcount at about 28.1 million workers after the decline. (msn.com) That pullback did not line up with the broader U.S. labor market. ADP said private employers added 62,000 jobs in March 2026, and companies with 500 or more employees added 4,000. (adpemploymentreport.com) Bank of America’s February employment report also said its payrolls measure accelerated to 1.3% year over year in February, up from 0.8% in January. The bank said its data pointed to a strengthening labor market in early 2026. (bankofamerica.com) The gap suggests hiring has shifted away from the biggest listed companies, not vanished from the economy altogether. Health care, education, construction, and smaller employers have carried more of the recent job growth. (adpemploymentreport.com) (bls.gov) At the same time, profits at large public companies have held up. FactSet said on April 17 that the S&P 500 was still tracking 13.2% year-over-year earnings growth for the first quarter, the sixth straight quarter of double-digit growth. (factset.com) The gains have not been spread evenly. FactSet said information technology, materials, financials, and utilities were leading earnings growth, while energy and health care were posting or projecting declines. (factset.com) Earlier in April, FactSet said analysts had raised first-quarter earnings estimates to $629.3 billion from $627.0 billion since December 31. It also said information technology had the highest number of companies issuing positive earnings guidance. (factset.com) That combination — leaner payrolls and rising earnings — fits a period in which large companies are emphasizing efficiency, automation, and margin protection. The headline jobs market, by contrast, has been supported by sectors and employers outside the biggest public corporations. (msn.com) (adpemploymentreport.com) For investors and workers, the message is narrower than a recession call: America’s biggest listed companies are hiring less, even as the wider labor market and corporate earnings still show growth. (factset.com) (adpemploymentreport.com)
