August 2020 Jobs Report

Posted by Marketing on 09 08, 2020

According to the August 2020 Jobs Report, private sector employment has seen a significant increase of 428,000 from July to August on a seasonally adjusted basis. In addition, the private sector employment report states that total nonfarm employment rose by 1.4 million in August.

The employment statistics in August strongly suggest the resurgence of economic activity after its abrupt halt in response to the global coronavirus (COVID-19) pandemic.

Overall, the August 2020 Employment Report saw notable job gains in retail trade, professional and business services, leisure and hospitality, and education and health services. This month’s jobs increase was also partially related to temporary hiring for the 2020 Census.

Without further ado, let’s take a deeper dive into the August 2020 Jobs Report.

Employment statistics show an increase in nonfarm private-sector jobs from July to August

The August 2020 Employment Report by ADP reports an increase of 428,000 when it comes to private-sector employment.

The unemployment rate declined by 1.8 percentage points from July, reaching 8.4% in August. Additionally, the number of unemployed fell by 2.8 million, totaling persons without work this month to 13.6 million.

While the unemployment rate has been steadily declining in the past four months, it’s still significantly higher than it was in February or pre-pandemic. Specifically, it is 4.9% higher from the said periods, which equates to a total of 7.8 million more people without jobs.

Large businesses continue to see the greatest increase in this month’s National Employment Report

In August, large businesses (500+ employees) saw the most notable increase with 298,000 jobs. Mid-sized businesses (50-499 employees) saw the second-highest increase with 79,000 jobs, followed by small businesses (1-49 employees), which saw an increase of 52,000 this past month.

Compared to the July 2020 Jobs Report, it’s evident that large businesses are steadily getting back on their feet, as this group continues to see the highest increases in employment.

The service-providing sector continues to rise

The Jobs Report for August 2020 cites major increases in the service-providing sector, reporting an overall 389,000 job increase. Here’s a more detailed breakdown of which industries saw the most significant increases:

The private sector employment report also cites slight increases in the goods-producing sector

Like the service-providing sector, the goods-producing sector is also steadily increasing. From July to August, this field saw an increase of 40,000 jobs. Here’s a more detailed breakdown of roles per industry:

How will the changes in the job market affect national employment in the months to come?

Here at Infinity Consulting Solutions (ICS), we continue to stay updated on the monthly private-sector employment reports. We’re also closely monitoring the current employment situation as we take the necessary steps to ensure the safety of our candidates, clients, and employees.

For more insights on how the U.S. employment situation continues to evolve in the months to come, be on the lookout for the September 2020 Job Report, which is expected to be released by September 30, 2020.

During these unprecedented times, we stand ready to provide much-needed support, including valuable resources, information, and insights. Don’t hesitate to contact us if you need assistance or guidance in your job search.

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