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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!

January 2020 JOLTS Report

January 2020 JOLTS Report: 6.8 Million Job Openings

The BLS just released the numbers for the January 2020 JOLTS Report, and November job openings clocked in at 6.8 million, down 561,000 from the previous month. Throughout the month, hires and separations changed little with 5.8 million and 5.6 million, respectively. And although job openings are declining, the quit rate has remained at 2.3% for over three months. This a strong sign that Americans’ confidence in the labor market is holding steady. Let’s take a closer look at the latest JOLTS Report.

JOLTS Report breakdown:

  • Job openings: 6.8 million
  • Hires: 5.8 million
  • Separations: 5.6 million
    • Voluntary: 3.5 million
    • Involuntary: 1.7 million
  • Quits Rate: 2.3%
  • Net Employment Gain: 2.3 million

The labor market is still hot

Although the number of job openings declined by nearly half a million, the net employment gain continues to be impressive over the last 12 months.  Over the past year (ending in November 2019), hires totaled 69.8 million and separations totaled 67.5 million, resulting in a net employment gain of 2.3 million.

Moreover, in the month of November, there were more total job openings (6.8 million) than the number of hires (5.8 million). In other words, today’s market is still candidate-driven as there are over 1 million more job openings than hires. And when pairing that with today’s half-century low unemployment rate (3.5%), the market remains hot as we make our way into 2020.

Get a helping hand in today’s tight market

The labor market is hot and doesn’t look like it will be slowing down anytime soon. It can be challenging for hiring managers to secure the top talent they need to keep business running as usual. If you are in this same boat, reach out to one of our recruiters at Johnson Service Group. We have a dedicated team of professional recruiters that are ready to make an impact on your hiring efforts; we are ready to help you find the talent your team needs in 2020 and beyond!

December 2019 Jobs Report

December 2019 Jobs Report: U.S. Creates 145,000 Jobs

The numbers are in for the final Jobs Report of the decade, and the BLS reported job gains of 145,000 throughout the month of December. As a result, 2019 was the ninth straight year of annual employment gains surpassing 2 million. Despite missing economists’ estimates of 164,000 job gains, the unemployment rate has remained a steady 3.5 percent (a half-century low) over the last three months. In other words, the labor market is holding steady as we enter the new year.

December 2019 Jobs Report breakdown

December also marks the 111th month in a row of job gains. With the addition of 145,000 jobs last month, employment rose to 2.1 million throughout 2019. And although short of economists’ projections, Michael Pearce, senior U.S. economist at Capital Economics, labeled last month’s job growth as “solid” even though it missed estimates and said, “We expect solid gains in payrolls to extend through 2020.” And if that isn’t impressive enough for you, jobless claims fell for a 4th week in a row to 214,000, which is back near post-recession lows.

Over the previous two months, employment gains from the previous two months were slightly revised down by 14,000 jobs. Job gains in October were revised down by 4,000 (from +156,000 to +152,000) and gains from November decreased by 10,000 jobs (from +266,000 to +255,000). However, over the last three months, employment gains are averaging 184,000 per month. And over the last 12 months, the economy added an average of 176,000 jobs a month in 2019.

Average hourly earnings continued to rise with an increase of $0.03, for a total hourly rate of $28.32. Over the last 12 months, average hourly earnings have increased by 2.9 percent – the lowest annual pace since July 2018. Additionally, the labor force participation rate remained little changed at 63.2 percent. Overall, the labor market is primed for another big year as we enter a new decade.

Job gains by industry

Here is a break down of the nonfarm payroll job gains for the month of December:

  • Retail Trade: +41,000 jobs
    • Clothing and Accessories Stores: +33,000 jobs
    • Building Material & Garden Supply: +7,000
  • Leisure and Hospitality: +40,000 (+359,000 jobs over the last 12 months)
  • Healthcare: +28,000 (+399,000 over the last 12 months)
    • Ambulatory Healthcare Services: +23,000
    • Hospitals: +9,000
  • Construction: +20,000 (+151,000 jobs over the last 12 months)
  • Professional and Business Services: +10,000 (+397,000 jobs over the last 12 months)
  • Mining: -8,000 (-24,000 jobs over the last 12 months)
  • Transportation and Warehousing: -10,000 (+57,000 jobs over the last 12 months)
  • Manufacturing: -12,000 (+46,000 jobs over the last 12 months)

Get the talent acquisition assistance you need in 2020

All signs are indicating that 2020 will be another strong year of growth for the U.S. economy labor force. If you had struggles filling your critical roles and sourcing skilled candidates in 2019, you’ll likely face the same challenges in the new year. If you want to get a kickstart on your hiring efforts this year, partner with a recruiter. At JSG, we have a team of recruiters ready to partner with your organization to source the talent you need to have another successful year in 2020. Reach out to us today, and let’s get to work!

December 2019 JOLTS Report

December 2019 JOLTS Report

The Labor Department released the latest JOLTS Report this morning, and the labor market received a boost in October. Throughout the month, both job openings and the number of quits by Americans increased, which are two solid signs of a strong job market. On the last day of business in October, job openings total 7.3 million, up from 7.0 million in September. The quit rate also remained at 2.3 percent, showing the confidence of Americans to quit their jobs to pursue more lucrative career opportunities.

Here’s a breakdown of the latest JOLTS Report.

December JOLTS Report

  • Job Openings: 7.3 million (+235,000 from the last report)
  • Number of Hires: 5.8 million (3.8 percent hire rate)
  • Number of Separations: 5.6 million
    • Voluntary: 3.5 million
    • Involuntary: 1.8 million
  • Job Opening Rate: 4.6 percent

The 4th Quarter labor market is holding firm

In October, both the number of quits and job openings throughout the country ticked up. In other words, Americans are gaining confidence in our current labor market. This is an excellent sign that the labor market will hold firm as we enter the new year in just a few short weeks.

Furthermore, job openings (7.3 million) is still well above the number of American separations (5.6 million). Therefore, there are plenty of opportunities for those currently seeking new employment. The net employment change continues to look attractive. Over the last 12 months (ending in October), hires totaled 69.8 million and separations totaled 67.4 million, for a net employment gain of 2.4 million. And when comparing this with December’s impressive Jobs Report with a staggering 266,000 job gains, the outlook of our job market is looking more and more appealing.

It’s still a candidate-driven market

The unemployment rate is currently holding at a 50-year low of 3.5 percent. Additionally, there are more job openings than hires as of October 2019. Thus, employers are still struggling to fill their critical roles. If your team needs help navigating this tight market, let’s partner together. We can help you fill your critical positions, and position your team to start the new decade on a strong note. Partner with a recruiter from Johnson Service Group today, and let’s work together to source the talent you need.