According to the Jobs Report for July 2020, as reported by ADP, private sector employment has increased by 167,000 jobs from June to July. This month’s national employment report gives more insight into employment statistics in July, as well as the job market, and how it relates to the coronavirus (COVID-19) pandemic.
In July, we saw a few improvements in the labor market overall. These improvements are a good sign that economic activity has resumed after being put on pause due to COVID-19. These also are a result of the state’s many efforts to contain it over the past few months.
In the July 2020 Employment Report, the most notable job gains occurred in leisure and hospitality, government, retail trade, healthcare, and professional and business services.
Let’s take a deeper dive into the July 2020 employment report.
Employment statistics include an increase of 167,000 nonfarm private-sector jobs from June to July.
The July 2020 Employment Report by ADP reports an increase of 167,000 when it comes to private-sector employment.
In July specifically, the unemployment rate declined by 0.9% from June, reaching 10.2%. Additionally, the number of those unemployed fell by 1.4 million, reaching 16.3 million this past month. Despite the declines we’ve seen over the past three months, we’re currently seeing measures up by 6.7 percentage points and 10.6 million since February.
Large businesses saw the greatest increase in this month’s National Employment Report.
In July, large businesses made up of 500 or more employees saw the most notable increase, rising by 129,000 jobs. Small businesses made up of 1-49 employees saw the second-highest increase, rising by a total of 63,000.
On the other hand, mid-sized businesses — which are composed of 50-499 employees — saw a 25,000 job decrease this past month.
This month’s private sector employment report is very different from the June 2020 Jobs Report, which saw increases across the board, with the highest increase in small businesses employment.
The service-providing sector continues to rise.
Two months ago, in June, we saw an increase of 1,912,000 jobs in the service-providing sector. The Jobs Report for July 2020 also cites major increases in this field, reporting a 166,000 job increase in the service-providing sector. Here’s a more detailed breakdown of which areas saw the most increases:
- Professional and business roles increased by 58,000
- Education and healthcare roles increased by 46,000
- Trade, transportation, and utility roles saw an increase of 41,000
- Leisure and hospitality roles increased by 38,000
- Other services saw a job increase of 3,000
- Financial activities saw a decrease of 18,000 jobs
- Information roles decreased by 3,000
Jobs in the goods-producing sector are also increasing on a more gradual scale.
Like the service-providing sector, the goods-producing sector is also steadily increasing. From June to July, for example, we saw an increase of 1,000 jobs in this sector. Here’s a more detailed breakdown of roles per industry:
- Manufacturing roles increased by 10,000
- Construction roles decreased by 8,000
- Natural resources and mining saw a job decrease of 1,000
How will the pandemic affect the job market in the months to come?
Here at Infinity Consulting Solutions (ICS), we continue to stay updated on the monthly national 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 global pandemic continues to impact the job market, be on the lookout for ADP’s August 2020 Job Report, which is expected on September 2, 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.