The long-awaited May Job Report is finally here, answering some of the public’s most anticipated questions regarding where the job market currently stands in the face of the global pandemic. For the past few months, many have been wondering how COVID-19 has impacted the workforce so far.
According to the U.S. Bureau of Labor Statistics, the economic activity that was halted due to the COVID-19 pandemic is gradually resuming as more states have begun opening up. As a result, total nonfarm employment rose by 2.5 million in May, and the unemployment rate decreased to 13.3%.
With the economy starting to get back on its feet, the job market is still taking gradual steps in reintroducing employees back into the workforce. In its monthly employment report, ADP announced that from April to May, nonfarm private sector employment decreased by 2,760,000. While the amount of jobs lost is significant, the results are not as catastrophic as expected as the economy begins to pick back up.
Let’s take a deeper dive into the May 2020 Job Report.
Large businesses continue to be the most significantly impacted amid the pandemic
Although small and midsized companies have been impacted with major job losses amid COVID-19, large companies made up of 500+ employees continue to see the most negative impact, seeing a decrease of 1,604,000 jobs from April to May.
Although job losses have continued into May, it looks like the employment situation may be beginning to pick up. May’s 1,604,000 loss is an improvement from April’s employment report, which revealed a decrease of 8,963,000 for the same group.
From April to May, midsized companies comprising 50-499 employees come in a close second with a total of 722,000 jobs lost, while small companies with 1-49 employees saw a decrease of 435,000 in the past month.
The service-providing sector has seen the most negative impact as a result of Covid-19
As many states were in the midst of lockdowns and curfews last month, the majority of companies in the service-providing sector have had no choice but to close up shop or induce mass layoffs for the time being.
As a result, the service-providing sector saw a decrease of 1,967,000 from April to May. Here’s a breakdown of total losses per industry:
- Trade, transportation, and utility roles saw a decrease of 826,000
- Other services saw a job decrease of 307,000
- Professional and business roles decreased by 250,000
- Financial activities saw a decrease of 196,000 jobs
- Education and healthcare roles decreased by 168,000
- Information roles decreased by 115,000
- Leisure and hospitality roles decreased by 105,000 jobs
The goods-producing sector experienced another job decrease
Like the service-providing sector, employees in the goods-producing sector do not have the opportunity to work remotely for the most part. The majority of these workers have been laid off or furloughed, resulting in a 794,000 job decrease.
Here’s a breakdown of the industries within the goods-producing sector that were impacted directly in the past month:
- Manufacturing roles decreased by 719,000
- Natural resources/mining saw a job decrease of 52,000
- Construction roles decreased by 22,000
The impact of Covid-19 continues to weigh heavily on the job market
As new developments surround the pandemic, please remember that this month’s data do not necessarily reflect its complete on the overall employment situation in the U.S. For more insights on how the global pandemic continues to impact the job market, ADP’s June 2020 Job Report is expected to be released July 1, 2020.
Here at Infinity Consulting Solutions (ICS), we continue to stay updated on the monthly job reports, and we monitor the situation closely and take 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.