Employment Falls By 700,000 in March

Total payroll employment in March fell by 701,000 primarily due to COVID-19, according to a recent Bureau of Labor Statistics (BLS) report, and the unemployment rate hit 4.4 percent, up 0.9 percent from the previous month.

That marks the biggest month-over-month decline since January 1975, when it also increased by 0.9 percent.

“March data from the establishment and household surveys broadly reflect some of the early effects of the coronavirus (COVID-19) pandemic on the labor market,” a BLS statement cautioned. “We cannot precisely quantify the effects of the pandemic on the job market in March. However, it is clear that the decrease in employment and hours and the increase in unemployment can be ascribed to effects of the illness and efforts to contain the virus. It is important to keep in mind that the March survey reference periods for both surveys predated many coronavirus-related business and school closures in the second half of the month.”

The leisure and hospitality industry, including eating and drinking establishments, was hit the hardest, with 459,000 lost jobs. Declines were also seen in healthcare and social assistance, professional and business services and the retail industry.

The number of total unemployed people rose by 1.4 million in March, hitting a total of 7.1 million. Temporary layoffs more than doubled in March to 1.8 million. Permanent jobs lost hit 1.5 million, a 177,000 increase. Meanwhile, the labor-force participation rate was 62.7 percent, a decreased of 0.7 percent.

April’s report is scheduled to go out May 8.