Unemployment jumps to 4.4%
Employment fell by 701,000 jobs in March with the unemployment rate rising 0.9% to 4.4%, according to the latest Employment Situation Report from the Bureau of Labor Statistics (BLS).
This is the largest monthly increase in the unemployment rate since January 1975, when the increase was also 0.9%. The number of unemployed persons rose by 1.4 million to 7.1 million in March.
The BLS said that the loss of jobs reflects the effects of the coronavirus (COVID-19) and efforts to contain it.
Employment in leisure and hospitality fell by 459,000, mainly in food services and drinking places.
Additional declines occurred in health care and social assistance, professional and business services, retail trade, and construction.
"The job losses in March were no surprise, capturing the early impacts of the COVID-19-induced economic shutdown," said Lawrence Yun, chief economist of the National Association of Realtors. "The majority of cuts occurred in restaurants, leisure, and travel industries. The construction industry also experienced losses, but principally related to CRE."
Employment decreased in construction by 29,000 jobs while nonresidential building decreased by 11,000. Heavy and civil engineering construction declined by 10,000 jobs.
Construction employment had increased by 211,000 positions over the prior 12 months.
"Residential home construction jobs were steady and higher by 27,000 from a year ago for actual building construction and higher by 44,000 among general contractors," Yun notes. "We had a housing shortage before going into the crisis and home builders were gearing up to relieve the inventory tightness."
Retail employment fell by 46,000 jobs with 16,000 Residential home construction jobs were steady and higher by 27,000 from a year ago for actual building construction and higher by 44,000 among general contractors. We had a housing shortage before going into the crisis and home builders were gearing up to relieve the inventory tightness.losses in clothing stores along with a drop of 10,000 in sporting goods, hobby, book, and music stores.
General merchandise stores gained 10,000 jobs, however. Manufacturing employment decreased by 18,000.
The full Bureau of Labor Statics’ Employment Situation Report for March 2020 from the is available here.
This is the largest monthly increase in the unemployment rate since January 1975, when the increase was also 0.9%. The number of unemployed persons rose by 1.4 million to 7.1 million in March.
The BLS said that the loss of jobs reflects the effects of the coronavirus (COVID-19) and efforts to contain it.
Employment in leisure and hospitality fell by 459,000, mainly in food services and drinking places.
Additional declines occurred in health care and social assistance, professional and business services, retail trade, and construction.
"The job losses in March were no surprise, capturing the early impacts of the COVID-19-induced economic shutdown," said Lawrence Yun, chief economist of the National Association of Realtors. "The majority of cuts occurred in restaurants, leisure, and travel industries. The construction industry also experienced losses, but principally related to CRE."
Employment decreased in construction by 29,000 jobs while nonresidential building decreased by 11,000. Heavy and civil engineering construction declined by 10,000 jobs.
Construction employment had increased by 211,000 positions over the prior 12 months.
"Residential home construction jobs were steady and higher by 27,000 from a year ago for actual building construction and higher by 44,000 among general contractors," Yun notes. "We had a housing shortage before going into the crisis and home builders were gearing up to relieve the inventory tightness."
Retail employment fell by 46,000 jobs with 16,000 Residential home construction jobs were steady and higher by 27,000 from a year ago for actual building construction and higher by 44,000 among general contractors. We had a housing shortage before going into the crisis and home builders were gearing up to relieve the inventory tightness.losses in clothing stores along with a drop of 10,000 in sporting goods, hobby, book, and music stores.
General merchandise stores gained 10,000 jobs, however. Manufacturing employment decreased by 18,000.
Yun said that he expects much higher losses in April with May figures determining if the stimulus package prevents additional layoffs.
"Be mindful that the unemployed are not at fault, hence the enhanced unemployment insurance checks to make up for a good portion of lost income," Yun said. "There will be spending power ready to be unleashed once the all-clear signal is declared."
The full Bureau of Labor Statics’ Employment Situation Report for March 2020 from the is available here.