According to the Labor Department, U.S. employers added 638,000 jobs last month, much than economists projected. This is the sixth month in a row of job gains as the country continues to recover from the pandemic. The unemployment rate also dropped to 6.9%, a whole percentage point lower than September’s rate. The positive results of this month’s report are primarily thanks to the decline in the number of temporary layoffs and a boost in seasonal hiring. Here is an overview of the October 2020 Jobs Report.
October 2020 Jobs Report Overview
U.S. employers are on a six-month streak of adding nonfarm payrolls. And with a massive decline in government workers due to the conclusion of the 2020 census, the Labor Department would have reported over 900,000 nonfarm payroll gains. “The 638,000 rise in nonfarm payrolls in October is stronger than it looks as it included a 147,000 drop in temporary Census employment and, alongside the big fall in the unemployment rate, it suggests that the labor market recovery still has plenty of momentum,” Andrew Hunter, senior U.S. economist for Capital Economics.
This month’s gains are a shock to many economists as the number of positive coronavirus cases continues to surpass daily records. On November 5th, the U.S. reported almost 117,000 new coronavirus cases. And although we have made significant strides in our country’s recovery, there are still 11.1 million unemployed persons (down 1.5 million from last month).
Workers are returning on-site
A noticeable shift in the October Jobs Report was the number of remote workers returning on-site. 21.2% of employees last month worked remotely because of the virus. That is slightly down from September’s rate of 22.7%. This trend will be interesting to watch going forward as the number of positive cases continues to climb. Regardless of this slight decline, millions of people are still working remotely, and hiring managers will have to continue to change their processes to attract them.
Job gains by industry
Last month, U.S. employers added 638,000 nonfarm payrolls. Noticeable job gains occurred in leisure and hospitality (+271,000), professional and business services (+208,000), retail trade (+104,000), construction (+84,000), healthcare and social assistance (+79,000), transportation and warehousing (+63,000), manufacturing (+38,000), financial activities (+31,000), and other services (+47,000). Employment in government fell by 268,000, mostly due to the loss of 147,000 2020 Census workers.
Revision from the previous jobs report
The Labor Department reported that total nonfarm payroll employment gains have increased in previous months. In August, payrolls were revised up by 4,000, from +1,489,000 to +1,493,000, and in September, payrolls were revised up by 11,000, from +661,000 to +672,000. With revisions over the last two months combined, employment was 15,000 more than previously reported.
Find the talent you need before year’s end
We have less than two months left of 2020 (thankfully); it’s time to start thinking about your hiring needs going into the new year. There are millions of talented workers on the market, and you don’t want to wait to scoop them up, or you will miss out. If your hiring team needs assistance navigating this challenging, ever-changing labor market, reach out to us today. We are here to help you start the new year off on the right foot.