In the past month, many Americans have been left wondering how much impact COVID-19 has had on the job market so far and what kind of effects we’ll see in employment for years to come. Officially released early last week, the March 2020 Job Report is here to answer just a few of those questions. The employee report for March 2020 from ADP cites a 27,000 job decrease from February to March.
The outbreak of the coronavirus pandemic has drastically shifted the workforce, leaving many Americans with a fear of imminent unemployment and financial difficulties. While there is so much uncertainty surrounding the job market during this time, it is important to note that the March Jobs Report only accounts for data through March 12. As a result, this month’s report does not fully reflect the impact of COVID-19 on the overall employment situation.
Here are a few key points from the March 2020 Job Report to keep in mind as employees, employers, and candidates continue to navigate the new norm, in response to developments surrounding COVID-19:
Small businesses have been hit the hardest
ADP defines small businesses as companies comprising 1-49 employees. From February to March, these businesses saw a decrease of 90,000 employees overall. Broken down even further, small companies with 1-19 employees suffered a 66,000 decrease, while companies with 20-49 employees saw a decrease of 24,000.
Mid-sized businesses (50-499 employees), on the other hand, saw a 7,000 employment increase, whereas large companies (500+ employees) saw a 56,000 increase.
The service-providing sector saw a drop in employment across the board
The service-providing sector saw the highest decrease, losing a total of 18,000 jobs this month. Here’s what it looks like broken down per industry:
- Trade, transportation, and utility roles saw a 37,000 decrease
- Leisure and hospitality decreased by 11,000 jobs
- Other services decreased by 8,000 jobs
- Information roles decreased by 7,000
- Professional and business roles decreased by 3,000 jobs
- Financial activities remained stagnant at zero jobs added
- Education and health roles increased by 48,000
The goods-producing sector also saw overall decreases
The goods-producing sector decreased by a total of 9,000 jobs, with the construction industry being hit the hardest with a decrease of 16,000. Manufacturing roles, on the other hand, increased by 6,000, while natural resources and mining roles increased by 1,000.
What does this mean for me?
With new developments being released daily, there’s no concrete answer for how massive the pandemic will affect employment. Last month saw many decreases in employment, so we can only wait and see what the future has in store. For more insights on how COVID-19 is impacting the job market, the April Jobs Report is expected to be released on May 6, 2020.
Infinity Consulting Services (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.