With the arrival of the October 2020 Job Report by ADP, the public has gained new insights into where the job market currently lies and the national employment trends amid the global pandemic. This month's report cites a 365,000 job increase in U.S. nonfarm private sector employment from September to October on a seasonally adjusted basis.
Overall, the October 2020 Job Report saw notable gains in leisure and hospitality, professional and business services, retail trade, and construction, while employment in government has continued to decline.
This month’s progress and employment statistics reflect the ongoing coronavirus (COVID-19) pandemic, which has hit some areas harder than others in the past few months. Let's take a deeper dive into the October 2020 Job Report to learn where the job market currently stands.
The employment report shows a continuous increase in U.S. nonfarm private-sector employment month-to-month.
The October 2020 Job Report by ADP reports an increase of 365,000 when it comes to nonfarm private-sector employment.
From September to October, the unemployment rate declined by 1.0%, reaching a total of 6.9%. Additionally, the number of unemployed persons fell by 1.5 million, reaching a total of 11.1 million people currently unemployed. While these two measures have been on the decline for the past six months, the unemployment rate and the number of persons unemployed have reached nearly twice their levels since February of this year, at 3.5% and 5.8 million, respectively.
Large businesses continue to experience the greatest job increase among different business sizes.
In October, midsized companies with 50-499 employees saw the greatest increases, growing by 135,000. Next up, large businesses with over 500 employees saw the second largest growth, with an increase of 116,000. Small businesses made up of 1-49 employees closely followed, citing an increase of 114,000 in October.
Different from previous ADP job reports in which large and small companies saw the highest growth rates, this month saw midsized companies on a steady rise.
The service-providing sector continues to rise significantly, as reported in the October employment report.
The October 2020 Job Report cites major increases in the service-providing sector with an overall job increase of 348,000. Below is a more detailed breakdown of the industries that saw the most significant growth:
- Leisure and hospitality roles increased by 125,000.
- Education and healthcare roles increased by 79,000.
- Professional and business roles increased by 60,000.
- Trade, transportation, and utility roles increased by 53,000.
- Other services saw a job increase of 23,000.
- Financial activities saw an increase of 6,000.
- Information roles saw no increases or decreases.
The October 2020 Job Report also cites slight increases in the goods-producing sector.
Like the service-providing sector, the goods-producing sector is also steadily increasing. During October, this field saw a slight increase of 17,000 jobs with no decreases. Here's a more detailed breakdown of roles that grew per industry:
- Manufacturing roles increased by 7,000.
- Construction roles increased by 7,000.
- Natural resources and mining roles increased by 3,000.
Stay tuned for employment trends that will continue to impact the job market.
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 our candidates', clients', and employees' safety.
For more insights on how employment trends continue to evolve in the months to come, be on the lookout for the November 2020 Job Report, which is expected to be released on December 2, 2020.
During these unprecedented times, we stand ready to provide much-needed support, including valuable resources, information, and insights. Please feel free to contact us if you need assistance or guidance in your job search.
Sources: ADP Employment Reports, US Bureau of Labor Statistics