The June job report has already been released, providing more insights into the current employment situation and how the coronavirus (COVID-19) has impacted the job market.
In June, many parts of the country resumed economic activity, which was put on hold from March to May due to the COVID-19 pandemic. This month’s job report, released late last week by ADP, reveals an increase in leisure and hospitality roles, and retail trade, education, and health services. According to ADP’s monthly report, total private sector employment increased by 2,369,000 jobs from May to June.
Let’s take a deeper dive into the June 2020 employment report.
The unemployment rate decreased by 2.2% from May to June.
Although unemployment has been on the rise since the start of the pandemic, last month saw a decrease in the unemployment rate, which reached 11.1% in June. This percentage was down by 2.2%, from the unemployment rate of 13.3% in May. Overall, the number of unemployed persons fell by 3.2 million and is now at 17.8 million in June.
While the unemployment rate has decreased, the jobless rate and number of those who are still unemployed have not. Since February, these rates have gone up by 7.6% at around 12 million.
Small businesses saw the greatest increase
Small businesses made up of 1-49 employees have arguably been hit the hardest by COVID-19, losing a significant amount of business and employees in the past few months. Last month, however, there was an increase of 937,000 jobs for small businesses.
Large businesses (500+ employees) came in a close second with an increase of 873,000, and midsized companies (50-499 employees) rose by 559,000. This is a big step up from the May 2020 Job Report, which saw declines across the board, particularly for large businesses.
The service-providing sector is on the rise
In May, we saw a 1,967,000 decrease in the service-providing sector. Between May and June, however, the same sector saw an increase of 1,912,000 jobs. Here’s a breakdown of gains and losses by industry:
- Leisure and hospitality roles increased by 961,000
- Trade, transportation, and utility roles saw an increase of 288,000
- Education and healthcare roles increased by 283,000
- Other services saw a job increase of 215,000
- Professional and business roles increased by 151,000
- Financial activities saw an increase of 65,000 jobs
- Information roles decreased by 50,000
Jobs in the goods-producing sector are gradually increasing
Like the service-providing sector, the goods-producing sector is also steadily increasing. May to June saw an increase of 457,000 jobs in this sector. Here’s a breakdown of roles per industry:
- Construction roles increased by 394,000
- Manufacturing roles increased by 88,000
- Natural resources/mining saw a job decrease of 26,000
How will the pandemic affect the job market in the months to come?
As new developments surround the pandemic, please remember that this month’s data do not necessarily reflect its complete impact on the overall employment situation in the U.S. There will undoubtedly be more to come as states begin reopening. For more insights on how the global pandemic continues to impact the job market, be on the lookout for ADP’s July 2020 Job Report, which is expected on August 5, 2020.
Here at Infinity Consulting Solutions (ICS), we continue to stay updated on the monthly job reports. We are monitoring the current employment situation closely while taking the necessary steps to ensure the safety of our candidates, clients, and employees.
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.