As the global pandemic continues to impact households and businesses around the world, the job market has seen significant shifts as a result. Released late last week, ADP’s April Job Report reflects the effects of the COVID-19 pandemic and efforts to contain it, citing a significant decrease of 20,236,000 jobs in private sector employment.
Furthermore, employment fell sharply in all major industry sectors, with particularly heavy job losses in leisure and hospitality. In total, the unemployment rate rose to 14.7%, as reported by the U.S. Bureau of Labor Statistics.
The much-awaited April Job Report is a strong indicator of just how much of an impact COVID-19 has had on the job market. It is important to keep in mind though that the report does not reflect the full impact of COVID-19 on the overall employment situation, which will continue to experience changes.
As we reflect on the employment situation brought on by COVID-19, here are a few key points from the April Job Report.
Large businesses were impacted negatively this month
Last month, it was reported that small businesses were hit the hardest, losing a total of 90,000 employees in the March 2020 Jobs Report. This month, however, large businesses made up of 500+ employees took a significantly bigger hit, seeing a decrease of 8,963,000.
Decreases across the board were consistent in the employment report for April 2020, with businesses of all sizes seeing major losses.
Midsized businesses composed of 50-499 employees also saw a major decrease of 5,269,000, while small businesses made up of 1-49 employees saw a 6,005,000 loss of employees.
The service-providing sector saw a 16,007,000 decrease
The COVID-19 global pandemic seems to have hit the service-providing sector the hardest this month. For the majority of these employees, working from home is not an option, so many have been furloughed or laid off for the time being.
As a result of stay-at-home mandates and health precautions strongly enforced, many businesses in the service-providing sector have had to close their doors completely. Here’s a breakdown of total losses per industry:
- Leisure and hospitality roles decreased by 8,607,000 jobs
- Trade, transportation, and utility roles saw a decrease of 3,440,000
- Other services decreased by 1,298,000 jobs
- Professional and business roles decreased by 1,167,000
- Education and health roles increased by 971,000
- Information roles decreased by 309,000
- Finance-related roles saw a decrease of 216,000
The goods-producing sector was also hit significantly, experiencing a decrease of 4,229,000
Like the service-providing sector, the good-producing sector is unable to accommodate work-from-home roles for the most part. As a result, in April, the good-producing sector decreased by a total of 4,229,000 jobs. Here’s a further breakdown by industry:
- Construction roles decreased by 2,477,000
- Manufacturing roles decreased by 1,674,000
- Natural resources/mining saw a decrease of 78,000
What does this mean for me?
With the current employment situation constantly evolving, there’s no concrete answer for how the global pandemic will affect overall employment in the months to come. For more insights on how COVID-19 is impacting the job market, the May Jobs Report is expected to be released on June 3, 2020.
Infinity Consulting Solutions (ICS) continues to monitor developments surrounding COVID-19 and takes the necessary precautions to ensure the safety of our employees, clients, and candidates. During these difficult times, we’re here to provide your teams with the necessary resources, information, and insights.