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July 2020 Jobs Report

July 2020 Jobs Report: Three-Straight Months of Job Gains

For the third month in a row, the U.S. economy experienced a growth in jobs despite a spike in COVID-19 cases across many regions of the country. According to the Department of Labor, nonfarm payrolls increased by an additional 1.8 million jobs in July. That’s slightly better than the 1.5 million job gains predicted by economists. As a result of this uptick, the unemployment rate dropped to 10.2% from 11.1% the previous month. Although these numbers are inching closer to pre-pandemic growth, the labor market’s growth is decelerating from last month’s 4.8 million job gains in June.

July 2020 Jobs Report Overview

The addition of 1.8 million jobs is a steep decline from the shocking gain of 4.8 million jobs last month, the most significant single-month increase in U.S. history. However, despite surges in coronavirus cases, the U.S. economy is still adding jobs as many businesses slowly begin to open their doors. “The labor market continues to heal, which is encouraging, but there is a long road ahead,” said Michelle Meyer, head of U.S. economics at Bank of America.

Although improving at a slower rate, these numbers are surprising to many economists as unemployment claims are still trickling in. In the week ending on August 1, adjusted initial unemployment claims reached 1.18 million. As COVID-19 cases continue to soar, it will be interesting to see how this number fluctuates. Some states (such as Texas, Florida, Arizona, and California) may see this number increase, while others will decline as other states relax restrictions.

Additionally, the unemployment rate fell 0.9%, from 11.1% to 10.2%. This decline is a great indication that America is continuing to heal. However, the unemployment rate remains above the Great Recession high of 10% that was reached in October 2009. The labor force participation rate was 61.4%, virtually unchanged from the previous month. But on the brighter side, the average hourly earnings rose by $0.07 to $29.39, a nice surprise for many economists.

Where are the job gains?

Significant employment increases occurred in leisure and hospitality (+592,000), government (+301,000), retail trade (+258,000), professional and business services (+170,000), healthcare (+126,000), social assistance (+66,000), transportation and warehousing (+38,000), manufacturing (+26,000), financial activities (+21,000), and construction (+20,000). All other services industry added 149,000 jobs and mining again saw a decline of jobs (-7,000).

Revisions from previous months

Over the last two months, total nonfarm payroll employment gains were revised. In May, payroll employment increased by 26,000, from +2,699,000 to +2,725,000. In June, payroll gains were revised slightly down by 9,000, from +4,800,000 to +4,791,000. With revision over the last two months combined, employment was 17,000 higher than previously reported.

Get some hiring help in this volatile market

It’s evident from the July 2020 Jobs Report that the economy is still recovering. And as the market continues to heal, employers are starting to gain confidence in their hiring efforts. If you are ready to begin filling your vacant positions, reach out to a recruiter from JSG. We are ready to help you source the talent you need to get production levels back on track. Contact us today, and let’s work together to design a hiring strategy that works for you.

June 2020 Jobs Report

June 2020 Jobs Report: A Spark of Light in the Labor Market

Despite recent spikes in COVID-19 cases, the U.S. labor market exemplified signs of recovery in the June 2020 Jobs Report. Last month, non-farm payrolls added 4.8 million jobs in June, much higher than the +2.9 million expected by economists. As a result, the unemployment rate dropped to 11.1%, which is also better than the predicted rate of 12.4%. Overall, we still have a long way to go before we return to our pre-pandemic state, but we have seen a spark of light in the U.S. labor market for two consecutive months.

June 2020 Jobs Report Overview

The addition of 4.8 million jobs is a massive jump from May’s gain of 2.7 million jobs, marking the most significant single-month increase in U.S. history. “The 4.8 million rise in non-farm payrolls in June provides further confirmation that the initial economic rebound has been far faster than we and most others anticipated,” said Michael Pearce, senior U.S. economist at Capital Economics.

These numbers are a little surprising since jobless claims keep rolling in each week. In another report released by the Department of Labor, U.S. unemployment claims clocked in at 1.427 million. However, this contrast is partly because not every unemployed American is returning to work, even after states and counties continue to open. Thus, many of the 4.8 million jobs are new jobs that have been created over the last month.

The unemployment rate declined by 2.2%, from 13.3% in May to 11.1% last month. The labor force participation rate also saw a nice bump to 61.5%, another strong indication that we are well on our way to recovery. Additionally, the number of temporary layoffs in June fell by 4.8 million to a total of 10.6 million, following last month’s trend.

Where are the job gains at?

Significant employment increases occurred in leisure and hospitality (+2.1 million), retail trade (+740,000), education and health services (+568,000), manufacturing (+356,000), professional and business services (+306,000), construction (+158,000), transportation and warehousing (+99,000), wholesale trade (+68,000), financial activities (+32,000), and government (+33,000). Unfortunately, the mining industry continued to lose jobs (-10,000). Employment in all other services industries increased by +357,000.

Revisions from previous months

Over the last couple of months, non-farm payroll employment was revised. In April, employment was declined by 100,000 from -20.7 million to -20.8 million. However, May’s employment levels saw a positive change of +190,000 from +2.5 million to +2.7 million. With these revisions, employment in April and May combined was +90,000 higher than previously reported.

Employers are hiring again

The last two job reports illustrate that the country is beginning to recover. We are far from our pre-pandemic job gain levels and historic-low unemployment rates, but we are making progress. These numbers show the resiliency of our country and employers across the country. If you are currently on the job market, we have hundreds of opportunities with employers that need talent like you. Check out our job board and find the next step in your career today.

May 2020 Jobs Report

May 2020 Jobs Report: The Job Market Starts to Rebound

Defying all odds and expert predictions, the unemployment rate fell to 13.3% last month, according to the Bureau of Labor Statistics. Nonfarm payrolls also rose by an unprecedented 2.5 million jobs in May. These results shatter economists’ predictions of hitting a record-high unemployment rate of 19.5% and a decline of 8.3 million jobs. If these predictions came to fruition, we would be in the largest state of decline since the Great Depression.

Although not close to its pre-pandemic state, the job market is recovering as people thankfully return to work. Here is a brief breakdown of the May 2020 Jobs Report.

May 2020 Jobs Report Overview

Last month, the unemployment rate was at 14.7% with a massive decline of 20.5 million jobs; numbers we haven’t seen in decades. Fast forward to May, and despite the impact of the Coronavirus, we’ve taken a massive leap in the right direction. The fact that economists predicted a loss of 8.3 million jobs and we gained 2.5 million shows that the U.S. is well on it’s way to recovery.

“It seems the damage from the nationwide lockdown was not as severe or as lasting as we feared a month ago,” said Scott Clemons, chief investment strategist at Brown Brothers Harriman.

This report is shocking to most as another 1.9 million unemployment claims were reported yesterday, totaling nearly 43 million unemployment claims. This drastic increase in jobs despite record-breaking unemployment gains “suggests that the U.S. economy is more resilient than expected,” said Seema Shah, chief strategist at Principal Global Investors.

Where were the job gains?

Significant employment increases occurred in leisure and hospitality (+1.2 million), construction (+464,000), education and health services (+424,000), and retail trade (+368,000). Government employment continued to decline last month (-585,000). Manufacturing also saw a gain of +225,000 jobs, and so did professional & business services with +127,000 jobs.

Revisions from previous months

Total nonfarm employment was revised in both March and April. In March, payrolls were revised down from -881,000 to -1.4 million. And in April, payrolls declined from -20.5 to -20.7 million. With these revisions, combined employment in March and April was 642,000 lower than previously reported. After these revisions, we have averaged a monthly loss of 6.5 million jobs per month over the past three months.

Employers are still hiring

Overall, May’s Jobs Report is truly great news as we continue to recover from this global pandemic. However, we still have a long way to go and must be patient. But employers are beginning to bring workers back and hire new staff members. If you’re currently looking for a new job, Johnson Service Group is here to help. Check out our job board to find your next opportunity!

April 2020 Jobs Report

April 2020 Jobs Report: Jobs Fall by 20.5 Million

In April, another 20.5 million jobs were lost because of the COVID-19 pandemic. This decline is the biggest loss since the Great Depression and a massive leap from March’s loss of 870,000 jobs. This surge in job losses comes as no surprise as more than 33 million Americans have filed for unemployment claims since the end of March. The unemployment rate also ticked up 10.3%, for a total unemployment rate of 14.7% in March. This unemployment rate is the largest month-to-month increase since the BLS started tracking these statistics. Here is a brief overview of the April Jobs Report.

April 2020 Jobs Report Summary

These job losses are over double the losses recorded during the 2008 financial crises and the steepest decline since the government began recording this data in 1939. After the 2008 Financial Crises, the U.S. added 22.8 million jobs in a decade, but sadly, the Coronavirus has wiped out (at least temporarily) a decade’s worth of gains.

The industries hit the hardest last month was Leisure and Hospitality (7.7 million), Education and Health Services (2.5 million), Professional and Business Services (2.1 million), Retail Trade (2.1 million), Manufacturing (1.3 million), Government (980,000), and Construction (975,000).

Despite all of the job losses, average hourly earnings increased by $1.34, to $30.01 an hour. This increase is the result of essential workers earning hazard pay and lower-paid workers, unfortunately, losing their jobs.

Job Gain Revisions

In both February and March, total nonfarm payroll employment was revised down. In February, job gains revised down from +275,000 to +230,000, and in March, job losses revised from -701,000 to -870,000. These combined changes were 214,000 jobs lower than previously reported.

Light at the end of the tunnel

There is no disputing the stark outlook based on statistics from the BLS over the last three months. However, on a more positive note, we should hopefully start seeing a comeback in several states. In fact, 19 states are now only in a partial lockdown and are beginning to reopen. In states like these, thousands of Americans will thankfully get back to work and return to a little normalcy. Some of the businesses that have been hit hardest, such as restaurants, dental offices, and construction, can open back up. That is a significant step in the right direction for our country.

The curves are starting to flatten in many states; it finally feels like there is light at the end of the tunnel. We are all in this together and must continue to be patient. We will overcome this and come out stronger and more united as a nation.

April 2020 JOLTS Report

April 2020 JOLTS Report: 6.9 Million Job Openings

The April 2020 JOLTS Report was released this week, and on the last business day of February, there were 6.9 million job openings, according to the Bureau of Labor Statistics. Throughout the month, hires and separations held steady from January with 5.9 million and 5.6 million, respectively. The quit rate was also consistent at 2.3%. Clearly, these numbers do not reflect the full effect of the coronavirus pandemic, but it’s good to note that the labor market was holding firm before the virus hit the labor force.

Overview of April 2020 JOLTS Report

  • Job Openings: 6.9 million
  • Hires: 5.9 million
  • Separations: 5.6 million
    • Quits: 3.5 million
    • Involuntary: 1.8 million
    • Quit Rate: 2.3%
  • Net Employment Gain: 2.4 million

February picked up where January left off

February 2020 continued the hot streak from the month prior. Before the COVID-19 outbreak was in full swing, Americans continued to show their confidence in the labor market by voluntarily leaving their jobs to pursue other opportunities. This is demonstrated through a consistent quit rate from month-to-month (2.3%) in February. Involuntary quits were also little changed, illustrating that furloughs due to the virus had yet to take effect on American employers in February.

Net employment change

Over the last year (ending in February), hires totaled 70.3 million, and separations equaled 67.9 million. As a result, the net employment gain as of February was 2.4 million. If you pair this with February’s impressive job gains of 275,000, the labor market was humming along nicely in the first two months of 2020.

Obviously, these numbers will look much starker in the following reports from the BLS as more employers furlough their employees during social distancing and shelter in place orders. However, there are still jobs out there, and many employers are in desperate need of essential workers, especially healthcare organizations. If you are searching for a new opportunity at this time, don’t give up hope. Take a deep breath and reach out to our recruiting team. We can help you get back to work during these trying times. We have hundreds of job opportunities across the country with employers that are ready to hire quickly. And if you’re an employer struggling to control your staffing shortage, reach out to us today. We have the reach to help you find the talent you need during these difficult times. At Johnson Service Group, we work hard, we work together, and we work for YOU.

March 2020 Jobs Report

March 2020 Jobs Report: Jobs Fall by 701,000, Unemployment at 4.4%

In March, jobs fell by 701,000, showing the wreckage caused by the coronavirus crisis. Last month is the first time the BLS has reported a loss in jobs since September 2010. This is no surprise as unemployment claims spiked to 6.6 million (from March 22-28) as Americans struggle to cope with the economic impact of COVID-19. As a result, the unemployment rate surged to 4.4%, the highest rate since August 2017.

Let’s take a brief look at the March 2020 Jobs Report

The industry that was hit the hardest from the COVID-19 pandemic was the Leisure and Hospitality industry, with a loss of 459,000 jobs. That’s nearly two-thirds of the total job losses for March. Most of these job losses are from bars and restaurants that are sadly forced to close during the shutdown to help flatten the curve of the virus. However, as soon as these establishments can open up their doors again, the majority of these jobs will return.

Other industries hit hard by the virus were Healthcare (-61,000), Professional & Business Services (-52,000) Retail Trade (-46,000), and Construction (-29,000). Employment for the Federal Government actually rose by 18,000 jobs as the U.S. prepares to facilitate the 2020 Census.

Despite all this negativity, average hourly earnings continued to rise with an $0.11 increase to $28.62 per hour. Over the last 12 months, average hourly earnings have increased by 3.1%.

Before the COVID-19 pandemic

Before the pandemic sweeping the world, the labor market was holding steady, with jobs gains averaging +243,000 jobs over the prior three months. And in February alone, job gains clocked in at a mind-blowing 275,000 jobs. The unemployment rate was also sitting pretty at 3.5% – a 50-year low. And in 2019, average monthly job gains equaled 178,000 jobs. In other words, the economy and job market were humming along strongly until the pandemic.

Stay calm and stay patient

Yes, there is no disputing that these numbers are devasting. And this is just the begging as economists believe the March 2020 Jobs Report is only an indication of what’s to come in April. But social distancing is working. Data from California and Washington state show that “Stay Home, Stay Safe” orders are helping to flatten the curve of new cases. The sooner we overcome this virus, the sooner we can all go back to work. Yes, this virus is keeping people from working, but if we take the proper precautions, we can overcome this battle and return to our everyday lives.

COVID-19 Outbreak

Employers Are Still Hiring During the COVID-19 Outbreak

As the coronavirus continues to wreak havoc on the economy, more and more Americans are being furloughed as a result of mandatory “stay at home” orders. In a recent report from the BLS, jobless claims surged to 3.28 million last week (March 15 to 21). This is, no doubt, horrible news. It’s the highest level of seasonally adjusted initial claims ever recorded. For context, the previous record number of claims was 695,000 in October of 1982.

Some relief for Americans

There is no disputing that the COVID-19 outbreak has impacted the livelihood of every American. And although these numbers are scary, they don’t report the entire picture of today’s landscape. Even with a record-setting number of jobless claims, the U.S. stock market has surged for three days straight as a result of a new $2 trillion coronavirus stimulus package being passed by the Senate on Wednesday, March 25. The bill is expected to pass through the House on Friday.

The bill includes “one-time direct payments to individuals, stronger unemployment insurance, loans and grants to businesses and more health-care resources for hospitals, states, and municipalities.” It also requires insurance providers to cover preventative services for COVID-19, such as testing. Here is a summary of the aid the bill offers:

  • More than $350 billion to aid small businesses
  • $150 billion to hospitals and other health-care providers for equipment and supplies
  • Direct payments in early April to lower- and middle-income Americans of $1,200 for each adult. Families will also receive $500 for each child
  • Unemployment insurance extension to four months, plus an extra $600 weekly, with more workers eligible
  • $500 billion for distressed companies, including industry-specific loans for airlines, hotel companies, and others battered by the economic downturn

All of these things above are an intent to subsidize the income millions of Americans and the lost revenue of companies across the nation. Obviously, this isn’t an ideal situation, but this aid will definitely help the American economy and job market strongly recover once we are ”over the hill” with the battle against COVID-19. And as a result, the Dow Jones has been rebounding nicely the last few days. On Tuesday, March 24th, The Dow closed over 11% ahead, the strongest single-day gain since 1933.

The COVID-19 outbreak is creating jobs

Although millions of jobs are temporarily slashed, and many others are forced to work remotely, thousands of jobs are being generated. Several companies in various industries are experiencing surges in hiring as they attempt to keep up with the demand created by the virus. For example, Amazon is one of many distributors building up its staff to accommodate the explosive growth of online sales, as many Americans are stuck in quarantine. Currently,  Amazon is looking to add over 100,000 warehouse and shipping workers. CVS is also ready to add 50,000 workers to their team. So yes, while some employers, especially smaller businesses, are feeling the pressure of the COVID-19 outbreak, other companies are thriving.

We’re ready to lend a hand

We’ll know more about the impact of this virus on the labor market from the upcoming Jobs Report. There is no doubt that many are struggling right now; however, there is some good news out there amongst all the negativity. And at JSG, we are here to help those struggling at this time. There are still employers out there hiring, and we are ready to work for you to find you a great opportunity during these trying times. And if you’re a hiring manager feeling the sudden pressure, we are here to help you build up your staff. So, whether it’s on a temporary or permanent basis, we are ready to work for you. Stay safe out there.

March 2020 JOLTS Report

March 2020 Jolts Report: 7 Million Job Openings

Despite all the ruckus generated by the Coronavirus outbreak, the latest JOLTS Report released this morning. The BLS reported an impressive 7.0 million (+411,000) job openings on the last day of January. Throughout the month, hires and separations were little changed at 5.8 million and 5.6 million, respectively. The quit rate also remained at 2.3%, showing that Americans are still confident in their new job market prospects.

Here’s a more in-depth overview of the latest JOLTS Report

  • Job Openings: 7.0 million
  • Hires: 5.8 million
  • Separations: 5.6 million
    • Quits: 3.5 million
    • Involuntary: 1.7 million
    • Quit Rate: 2.3%
  • Net Employment Gain: 2.1 million

Starting the new decade strong

This is the first JOLTS Report of the new decade, and overall, it’s a good sign of what’s to come in 2020. The number of job openings increased by nearly half a million, and the number of quits held firm. Job openings grew for total private (+370,000) and edged up for government (+40,000). Additionally, throughout January, job openings increased in finance and insurance (+65,000), the federal government (+38,000), and mining and logging (+8,000).

The net employment rate also is looking very optimistic. Over the past 12 months (ending in January), the number of hires amounted to 70 million, and separations equaled 67.9 million. As a result, the net employment gain as of January 2020 was 2.2 million. Now, if you pair this with this month’s Jobs Report with +273,000 jobs, things are looking good for the labor market right now.

A look back to 2019

Last year, there was a total of 69.9 million hires, which is an increase of 1.3 million from 2018. Also, the total number of separations rose by 1.7 million in 2019, to a total of 67.9 million. In other words, there were substantially more hires AND separations last year, showing how strong the job market was throughout the entire year. Additionally, the number of quits rose for the 10th consecutive year, reaching 42.1 million. That’s up by 1.8 million and nearly two-thirds of the total separations last year. On another positive note, layoffs were down by 64,000 in 2019, another example of the strength of the labor market.

Need some help navigating this job market?

As you can see, the proof is in the pudding. The job market is looking fantastic, thanks to the latest JOLTS Report, and 2020 is off to a strong start. Yes, there is a lot of uncertainty in hiring due to the COVID-19 virus, but the majority of employers are still struggling to attract the talent they need. If that sounds like your company, give us a call. Our recruiters are working diligently to help our clients source the talent they need to keep business operations running smoothly. Let’s connect and see how we can work together.

February JOLTS Report

JOLTS Report: Job Openings Fell to 6.4 Million

On the last day of business in December, job openings fell by 364,000 to a total of 6.4 million openings. According to the latest JOLTS Report, the number of hires and separations changed little over the month, with 5.9 million and 5.7 million, respectively. And although the number of job openings continues to decline, the quite rate has held steady at 2.3% for four months now, indicating that Americans are still optimistic about the labor market. Here is an overview of the latest JOLTS Report:

JOLTS Report Summary

  • Job Openings: 6.4 million
  • Hires: 5.9 million
  • Separations: 5.7 million
    • Voluntary: 3.5 million
    • Involuntary: 1.9 million
  • Quite Rate: 2.3%
  • Net Employment Gain: 2.2 million

The labor market is holding steady

Once again, job openings fell in December (to a two-year low), which is discouraging many Americans. Notable industries with fewer job openings are retail and manufacturing, both falling to the lowest level since mid-2017. However, the net employment gain remained positive. Over the last 12 months (ending in December), hires totaled 70 million and separations amassed to 67.8 million, yielding a net employment gain of 2.2 million.

If you pair the net employment gain with the 225,000 jobs added in January, the labor market is still humming along in the new year. Therefore, job seekers’ confidence in the labor market is growing. Last month, the labor force participation rate rose by 0.2% to 63.4%. As a result, 574,000 Americans re-entered the workforce, forcing the unemployment rate to tick up by 0.1% to a total of 3.6%. In other words, despite a brief decline in job openings, confidence remains in today’s overall job market.

Recruit the help of a professional

The job market is still holding firm, and there are no signs of this changing in the near future. If your team needs help navigating today’s labor market, it may be time to recruit the assistance of a professional. At Johnson Service Group, we have an experienced team of recruiters waiting to make an impact on your organization. Reach out to us today, and let’s see how we can improve your hiring efforts in 2020.

January 2020 Jobs Report

January 2020 Jobs Report: 225,000 Jobs Added

The new decade is off to a strong start with the U.S. economy adding 225,000 jobs in January. The unemployment rate also ticked up to 3.6% as more Americans decide to look for new career opportunities. Additionally, year-over-year hourly wages are up 3.1%. As you can see, all signs are indicating an active labor market as we make our way into 2020. Let’s take a closer look at the January 2020 Jobs Report.

January 2020 Jobs Report Breakdown

January is the 112th month of consecutive job gains and was definitive proof that the labor market is speeding up. The unemployment rate also increased a tenth of a percent (to 3.6%) above last month’s 50-year low. These results blew away economists’ predictions of a measly 164,000 jobs for January. And if that isn’t impressive enough, last month’s gains clocked in at 50,000 more jobs than 2019’s monthly average of 175,000.

Over the previous two months, employment gains were slightly revised up by 7,000 jobs. Job gains in November were revised up by 5,000 (from +256,000 to +261,000) and gains from December increased by 2,000 jobs (from +145,000 to +147,000). However, over the last three months, employment gains are averaging 211,000 per month, much higher than the monthly average over the last 12 months.

Average hourly earnings also saw a bump in January with an increase of $0.07 to $28.44. Over the last 12 months, average hourly earnings have climbed by 3.1%. Average hourly earnings have been relatively flat over the last year or so, but regardless, remain on the positive side.

Jobs gains by industry:

  • Construction: +44,000 jobs (+12,000 monthly average in 2019)
    • Residential: +18,000
    • Nonresidential: +17,000
  • Healthcare: +36,000 jobs (+361,000 jobs over last 12 months)
    • Ambulatory Healthcare Services: +23,000
    • Hospitals: +10,000
  • Leisure and Hospitality: +36,000 jobs (+288,000 jobs over last 6 months)
  • Transportation and Warehousing: +28,000 jobs (+106,000 jobs over last 12 months)
    • Couriers and Messengers: +14,000
    • Warehousing and Storage: +6,000
  • Professional and Business Services: +21,000 jobs (+390,000 over last 12 months)
  • Manufacturing: -12,000 jobs
    • Motor Vehicles: -11,000 jobs

To summarize, jobs continue to increase at a steady rate, and more job seekers are entering the job market as their confidence continues to grow. If your team needs help sourcing talent in this tight market, let’s work together. Our team of recruiters is ready to help make an impact on your hiring efforts in 2020. Reach out to us today!