The September 2020 Job Report is finally here, sharing deep insight into national employment trends. This month's employment report cites a 749,000 job increase from August to September on a seasonally adjusted basis. The employment statistics in September reflect the resumption of economic activity that had been halted due to the coronavirus (COVID-19) pandemic and efforts to contain it.
Overall, the September 2020 Job Report saw notable job gains in leisure and hospitality, retail trade, health care and social assistance, and professional and business services. On the other hand, employment in government declined over the month, mainly in state and local government education.
Let's take a deeper dive into the September 2020 Job Report.
The employment report shows an increase in U.S. nonfarm private-sector employment from August to September
The September 2020 Job Report by ADP reports an increase of 749,000 when it comes to nonfarm private-sector employment.
The unemployment rate decreased by 0.5% from August to September, falling to 7.9%, as reported by the U.S. Bureau of Labor Statistics. Additionally, the number of those unemployed fell by 1 million, totaling persons without work this month to 12.6 million.
Both the unemployment rate and the number of unemployed have been declining for the past five consecutive months. However, these rates are still higher than they were in February or pre-pandemic, specifically by 4.4% and 6.8 million, respectively.
Large businesses continue to experience the greatest job increase among different business sizes
This month, large businesses (500+ employees) saw the most notable increase with 297,000 jobs. This is followed by Mid-sized businesses (50-499 employees) with an increase of 259,000 jobs. Last is the small businesses (1-49 employees), which saw an increase of 192,000.
As in previous employment reports, large businesses continue to see the highest increases in employment.
The service-providing sector continues to rise significantly
The September 2020 Job Report cites major increases in the service-providing sector with an overall 552,000 job increase. Below is a more detailed breakdown of the industries that saw the most significant increases:
- Trade, transportation, and utility roles increased by 186,000.
- Leisure and hospitality roles increased by 92,000.
- Education and healthcare roles increased by 90,000.
- Professional and business roles increased by 78,000.
- Other services saw a job increase of 60,000.
- Financial activities saw an increase of 29,000.
- Information roles increased by 17,000.
The September 2020 Job Report also cites increases in the goods-producing sector
Like the service-providing sector, the goods-producing sector is also steadily increasing. During September, this field saw an increase of 196,000 jobs with no decreases. Here's a more detailed breakdown of roles that grew per industry:
- Manufacturing roles increased by 130,000.
- Construction roles increased by 60,000.
- Natural resources and mining roles increased by 7,000.
How will employment trends affect the job market in the next months?
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 October 2020 Job Report, which is expected to be released on November 4, 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.