An official website of the United States government
Advance copies of this statement are made available to the press
under lock-up conditions with the explicit understanding that
the data are embargoed until 8:30 a.m. Eastern Daylight Time.
(NOTE: On May 11, 2020, BLS corrected errors in national estimates
for seasonally adjusted all employees in professional and technical
services, professional and business services, private service-
providing, service-providing, total private, and total nonfarm.
The corrected change in total nonfarm employment for April is 37,000
lower than initially reported. Estimates in the LABSTAT database and
in this statement were corrected for February, March, and April
2020. BLS also corrected other supporting documentation on
www.bls.gov/ces/.)
Statement of
William W. Beach
Commissioner
Bureau of Labor Statistics
Friday, May 8, 2020
Nonfarm payroll employment declined by 20.5 million in
April, and the unemployment rate increased to 14.7 percent,
reflecting the widespread impact on the job market of the
coronavirus (COVID-19) pandemic and efforts to contain it.
Employment fell sharply in all major industry sectors, with a
particularly large decline in the leisure and hospitality
sector.
The response rate for the household survey continued to be
adversely affected by pandemic-related issues, while that for
the establishment survey returned to a normal range in April.
In addition, there were changes to the estimation methods for
the establishment survey to better account for the historic
number of temporary or permanent business closures in April. The
impacts of the pandemic on the household and payroll surveys are
detailed in the April Employment Situation news release and
accompanying materials (available on the BLS website at
https://www.bls.gov/news.release/empsit.nr0.htm). For both
surveys, we were able to obtain estimates that met BLS standards
for accuracy and reliability.
The substantial job declines related to the coronavirus
pandemic started in March, as payroll employment declined by
881,000, as revised. Job losses accelerated in April, as an
additional 20.5 million jobs were lost. These April losses were
pervasive across all industry sectors, and brought nonfarm
employment to its lowest level since January 2011.
Employment in the leisure and hospitality industry
decreased by 7.7 million in April, or 47 percent. Job losses in
food services and drinking places accounted for nearly three-
quarters of the decline, as many restaurants and bars were
closed or curtailed operations due to the coronavirus pandemic.
Elsewhere in leisure and hospitality, employment was down by 1.3
million in the arts, entertainment, and recreation industry, and
the number of jobs in the accommodation industry fell by
839,000.
Employment declined by 2.5 million in education and health
services in April. Health care employment declined by 1.4
million, with decreases in offices of dentists (-503,000),
offices of physicians (-243,000), offices of other health
practitioners (-205,000), and hospitals (-135,000). Employment
in social assistance decreased by 651,000 over the month,
reflecting job cuts in child day care services (-336,000) and
individual and family services (-241,000). Employment in private
education declined by 457,000 over the month.
Employment in professional and business services declined
by 2.2 million in April. Much of the overall decline occurred in
temporary help services (-842,000). Employment also declined in
services to buildings and dwellings (-259,000), computer systems
design (-93,000), and architectural and engineering services
(-85,000).
Employment in retail trade also decreased by 2.1 million
over the month. Sizable job declines occurred in clothing stores
(-740,000); motor vehicle and parts dealers (-345,000);
miscellaneous store retailers (-264,000); furniture stores
(-209,000); and sporting goods, hobby, book, and music stores
(-185,000). By contrast, the component of general merchandise
stores that includes warehouse clubs and supercenters added
93,000 jobs.
Manufacturing employment fell by 1.3 million in April, with
about two-thirds of the decline occurring in the durable goods
component (-914,000). Within durable goods, large decreases
occurred in motor vehicles and parts (-382,000), fabricated
metal products (-109,000), and machinery (-80,000). Employment
in nondurable goods industries decreased by 416,000, including
declines in food manufacturing (-86,000), printing and related
support activities (-79,000), and plastics and rubber products
(-66,000).
Employment in the other services industry also declined by
1.3 million in April, with nearly two-thirds of the loss
occurring in personal and laundry services (-797,000).
In April, government employment declined by 980,000; local
government employment was down by 801,000, partly reflecting
school closures. Employment in state government education was
down by 176,000.
Construction employment decreased by 975,000 in April, with
large declines in specialty trade contractors (-691,000) and in
construction of buildings (-206,000).
Employment in transportation and warehousing fell by
584,000 over the month, with notable decreases in transit and
ground passenger transportation (-185,000) and in air
transportation (-141,000).
Wholesale trade employment decreased by 363,000 in April,
reflecting sizable declines in both the durable and nondurable
goods components.
Over the month, employment in financial activities fell by
262,000, with most of the decline occurring in real estate and
rental and leasing (-222,000).
Employment in information fell by 254,000 in April, driven
largely by a decline in motion picture and sound recording
industries (-217,000).
Mining employment decreased by 46,000 over the month,
mostly in support activities for mining (-33,000).
Average weekly hours for all private-sector workers showed
an increase of 0.1 hour in April, after declining by 0.3 hour in
March. However, in April, there were notable declines in the
average workweek for manufacturing (-2.1 hours), construction
(-1.3 hours), and wholesale trade (-1.2 hours).
Given the large employment decline in March and the extreme
job cuts in April, one must be cautious when interpreting the
changes in average weekly hours for all private-sector workers.
While it is certainly true some employees worked additional
hours in April, the majority of the increase in average weekly
hours reflects the disproportionate number of workers with
shorter workweeks who went off payrolls; their removal put
upward pressure on the average hours estimate.
Similarly, our estimates of average hourly earnings for
April also must be interpreted with extra caution. Average
hourly earnings of all employees on private nonfarm payrolls
rose by $1.34 in April to $30.01, following a gain of 15 cents
in March. While some workers experienced an increase in pay in
April, the increase in average hourly earnings reflects the
disproportionate number of lower-paid workers who went off
payrolls; their removal put upward pressure on the average
hourly earnings estimate.
Turning to the labor market indicators from the household
survey, the unemployment rate increased by 10.3 percentage
points to 14.7 percent in April. This is the highest
unemployment rate and largest single-month change in the history
of the series (seasonally adjusted data are available back to
1948). The number of unemployed people increased by 15.9 million
to 23.1 million. Among the unemployed, a large increase occurred
among people on temporary layoff; this group increased by 16.2
million in April to 18.1 million.
The unemployment rate rose sharply for all of the major
worker groups in April. The rate was 13.0 percent for adult men,
15.5 percent for adult women, 31.9 percent for teenagers, 14.2
percent for Whites, 16.7 percent for Blacks, 14.5 percent for
Asians, and 18.9 percent for Hispanics. The rates for all of
these groups, with the exception of Blacks, represent record
highs for their respective series.
Among the unemployed, the number of people searching for
work for less than 5 weeks was 14.3 million, an increase of 10.7
million from March. These recently unemployed people represented
61.9 percent of the unemployed in April. The number of
unemployed persons who were jobless 5 to 14 weeks rose by 5.2
million to 7.0 million. The number of people searching for work
for 27 weeks or more declined slightly to 939,000 over the
month.
The labor force participation rate declined by 2.5
percentage points in April to 60.2 percent, the lowest rate
since January 1973. Total employment, as measured by the
household survey, fell by 22.4 million to 133.4 million in
April. The employment-population ratio, at 51.3 percent, dropped
by 8.7 percentage points over the month. This is the lowest rate
and largest over-the-month decline in the history of the series,
which dates back to 1948.
The number of persons who usually work full time declined
by 15.0 million over the month, and the number who usually work
part time declined by 7.4 million. Part-time workers accounted
for one-third of the over-the-month employment decline.
In April, the number of people at work part time for
economic reasons (also referred to as involuntary part-time
workers) nearly doubled, increasing by 5.1 million to 10.9
million. The increase reflects a sharp rise in the number of
people whose hours were cut due to slack work or business
conditions.
The number of persons not in the labor force who currently
want a job, at 9.9 million, nearly doubled in April. These
individuals were not counted as unemployed because they were not
actively looking for work during the 4-week period ending with
the April survey or were unavailable to take a job. The large
increase in the want a job category reflects the impact of the
pandemic on the job market, as mandatory business closures,
stay-at-home orders, and fear of the coronavirus illness kept
many individuals from engaging in labor market activity in
April.
Among those who were not in the labor force in April but
wanted a job, 2.3 million were considered marginally attached to
the labor force, an increase of 855,000 over the month. (People
who are marginally attached to the labor force had not looked
for work in the 4 weeks prior to the survey but wanted a job,
were available for work, and had looked for a job within the
last 12 months.) Discouraged workers, a subset of the marginally
attached who believed no jobs were available for them, numbered
574,000 in April, little changed over the month.
In addition to the increase in the number of unemployed
people, there was also an increase in the number of workers who
were classified as employed but absent from work for the entire
reference week. As in March, special instructions sent to
household survey interviewers called for all employed people
absent from work due to coronavirus-related business closures to
be classified as unemployed on temporary layoff. However, not
all such workers were so classified in April. As is our usual
practice, no ad hoc actions were taken to reassign survey
responses; the data were accepted as recorded. If the workers
who were recorded as employed but absent from work due to "other
reasons" (over and above the number absent for other reasons in
a typical April) had been classified as unemployed on temporary
layoff, the overall unemployment rate would have been almost 5
percentage points higher than reported (on a not seasonally
adjusted basis). Additional information is available online at
www.bls.gov/cps/employment-situation-covid19-faq-april-2020.pdf.
Summarizing the labor market developments in April, nonfarm
payroll employment fell by 20.5 million, and the unemployment
rate increased to 14.7 percent, reflecting the effects on the
job market of the coronavirus pandemic and efforts to contain
it.