Six Months of Work in a Pandemic

Sudden Stop

More than 1 in 7 U.S. workers lost their jobs when the coronavirus pandemic and related orders to close businesses caused the economy to shrink.

About 7.5 million jobs were added in May and June, but unemployment remains at the highest levels since the Depression.

Multiple Measures

U.S. employment is commonly measured two ways, both of which show a catastrophic drop and a partial rebound this year.

The “establishment” survey asks employers how many positions are on their payrolls and counts the number of jobs in the economy.

The “household” survey asks individuals whether they're employed or not, and counts the number of workers in the economy.

Who Lost Jobs? Who's Back at Work?

Hispanic workers were hit disproportionately hard by closures, but have also been the group quickest to return to work.

Black workers, who already lagged behind other groups, lost jobs at the second fastest rate, and have returned to work more slowly than white workers, who incurred the smallest decline in jobs.

Asian workers have also been rehired at a slower rate than white workers.

Gender Gap

Women lost jobs at a steeper rate than men during the pandemic, though the gap between them has narrowed. The sharper decline reflects that women are disproportionately employed in some of the hardest-hit sectors, including nonhospital health-care jobs, hotels and restaurants.

Degree of Impact

More-educated and older workers were less likely to lose jobs as the businesses closed.

Workers ages 16 to 24, who are more likely to work retail and restaurant jobs, were hit harder than those ages 25 to 54, who are more likely to work in jobs that can be done remotely. Reopening of stores and restaurants meant younger people gained jobs at a faster rate in May and June.

Similarly, those without a high school diploma lagged those with a bachelor’s degree or higher.

Business Minded

Looking at the data reported by employers, we see similar trends in the job market.

That data shows in which industries jobs were lost, instead of who lost them.

Which Industries Lost Jobs

The bulk of jobs lost were in service industries, which account for about 70% of all U.S. jobs. The sector also had the fastest recent growth.

Goods-producing , such as manufacturing, were hit hard early on, but losses in government jobs, including in public schools, have overtaken them. Many state and local governments are cutting back as they face declining tax revenue.

Where We Shop

Consumer habits changed as stores closed. Retail jobs fell quickly, with the exception of grocery stores—which government authorities deemed essential. Employment at groceries grew this year.

Warehouse workers, who in part help deliver goods ordered online, were largely spared when more consumer spending shifted from bricks-and-mortar stores to online.

Health Jobs

The economic shock caused job losses for the health-care sector, an industry that previously grew consistently, even through past recessions.

The industry’s job losses were concentrated among professionals working outside hospitals. Many doctors’ and dentists’ offices closed when it was deemed too risky to treat nonurgent patients.

Hardest Hit

Hospitality was by far hit the hardest of any sector, which lost nearly half its jobs.

Jobs at bars and restaurants fell quickly as seated dining halted, though they have partly rebounded as states allowed reopenings.

Meanwhile, jobs in accommodations, such as hotels and resorts, have returned at a slower rate because many travelers have stayed close to home.

Open for Business

After a sharp fall in March, small businesses began reopening locations and adding employee hours later this spring.

Those gains plateaued since mid-June, suggesting growing caution at a time when Covid-19 cases rose in several states.

Hiring Prospects

New job postings, a proxy for labor demand, rose earlier this year, amid a tight labor market.

New postings plunged in March and early April, rose through early June, and have fallen since.