The Labor Department reported that nonfarm payrolls rose by 661,000. That is the fewest gains since May and much lower than economists’ expectations of around 850,000 payrolls. Regardless of expectations, the unemployment rate continued to decline from 8.4% to 7.9%. Although slower than predicted, the U.S. economy is still on the path of recovery, even as COVID-19 cases continue to surge. Here is an overview of the September 2020 Jobs Report.
September Jobs Report overview
Despite all odds, employers around the nation are continuing to add jobs, although at a slower rate in the last three months. Hiring started to cool in July, with the growth of nearly 2 million positions. There are still roughly 10.7 million Americans out of work than before the pandemic hit in February. However, we have made huge strides over the last seven months when employment fell by more than 22 million, and the unemployment rate hit an all-time high of 14.7%. Fast forward to today, the unemployment rate is sitting at 7.9%, and has been consistently declining since April. Moreover, the number of unemployed Americans declined by 1.0 million to 12.6 million unemployed persons.
The labor force participation rate slightly declined by 0.3%, to 61.4%, which is 2% lower than it was back in February. Additionally, average hourly earnings bumped up 4.8%, to $29.47.
The impact of the coronavirus
As the country continues its battle with the coronavirus, the labor market outlook is a little precarious, despite consistent growth over the summer. Last month, the U.S. surpassed 200,000 deaths from the coronavirus pandemic, and this morning, it was confirmed President Trump tested positive for the virus. This is the final jobs report before the November election. Hopefully, our battle with the virus continues to trend in the right direction, and more employers can create jobs.
Job gains by industry
The industries with the largest employment growth are leisure and hospitality (+318,000), retail trade (+142,000), healthcare and social assistance (+108,000), professional and business services (+89,000), transportation and warehousing (+74,000), manufacturing (+66,000), financial activities (+37,000), information (+27,000), construction (+27,000), wholesale trade (+19,000), and mining (+1,000). Government payroll declined by 216,000 and private education fell by 69,000.
Revisions from the previous jobs report
Over the last two months, total nonfarm payroll employment gains were revised. In July, payrolls were revised up by 27,000, from +1,734,000 to +1,761,000, and in August, payrolls were revised up by 118,000, from +1,371,000 to 1,489,000. With revisions over the last two months combined, employment was 145,000 more than previously reported.
Are you ready to harvest more jobs this fall?
More employers are gaining confidence in the labor market and jumpstarting their hiring efforts. Plus, seasonal hiring is about to be kicked into high gear as employers will go on a hiring spree to keep up with seasonal demand this fall. If your team is ready to revive your hiring efforts, JSG is here to help. We have a solid grasp on the market and a strong pipeline of candidates that are ready to work. Reach out to us today, and let’s work together to fill your job vacancies.
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