An official website of the United States government
Transmission of material in this statement is embargoed until
8:30 a.m. (ET) December 4, 2020.
Statement of
William W. Beach
Commissioner
Bureau of Labor Statistics
Friday, December 4, 2020
Nonfarm payroll employment increased by 245,000 in
November, and the unemployment rate edged down to 6.7 percent.
These improvements reflect the continued resumption of economic
activity that had been curtailed due to the coronavirus (COVID-
19) pandemic and efforts to contain it. However, the pace of
improvement in the labor market has moderated in recent months.
In November, private nonfarm employment rose by 344,000,
while employment in government declined by 99,000. In the
private sector, notable employment gains occurred in
transportation and warehousing, professional and business
services, and health care, while retail trade lost jobs.
The November increase in nonfarm payroll employment marked
the 7th consecutive month of job gains, although the magnitude
was considerably lower than in the prior 6 months. Employment is
down by 9.8 million (or 6.5 percent) since February, before the
onset of the pandemic in the United States.
Although the unemployment rate edged down in November, the
jobless rate and the number of unemployed people are up by 3.2
percentage points and 4.9 million, respectively, since February.
The response rate for the establishment survey was about
average in November. The rate for the household survey, while
slightly below normal due to pandemic-related issues, was much
higher than earlier in the pandemic. The impact of the pandemic
on the household and establishment surveys is detailed in the
November Employment Situation news release and accompanying
materials (available on the BLS website at
www.bls.gov/news.release/archives/empsit_12042020.htm).
Taking a closer look at the November payroll data,
employment in transportation and warehousing grew by 145,000,
representing nearly three-fifths of the over-the-month growth in
total nonfarm employment. Within transportation and warehousing,
employment rose over the month in couriers and messengers
(+82,000), warehousing and storage (+37,000), and truck
transportation (+13,000). Transportation and warehousing lost
595,000 jobs in March, April, and May combined. Since May, the
industry has regained 472,000, or nearly 80 percent, of the jobs
lost in the early months of the pandemic.
In November, professional and business services added
60,000 jobs, with about half the gain occurring in temporary
help services (+32,000). Services to buildings and dwellings
added 14,000 jobs. Since February, employment in professional
and business services is down by 1.1 million.
Employment in health care increased by 46,000 in November
but is down by 527,000 since February. Over the month, job gains
occurred in offices of physicians (+21,000), home health care
services (+13,000), and offices of other health practitioners
(+8,000). Employment in nursing care facilities declined by
12,000 in November and by 147,000 since February.
Construction employment increased by 27,000 in November.
Job gains occurred in residential specialty trade contractors
(+14,000) and in heavy and civil engineering construction
(+10,000). Since February, construction employment is down by
279,000.
Manufacturing employment grew by 27,000 in November but is
down by 599,000 since February. Over the month, employment
increased in motor vehicles and parts (+15,000), plastics and
rubber products (+5,000), and furniture and related products
(+3,000).
In November, employment in financial activities rose by
15,000, with gains in real estate (+10,000) and nondepository
credit intermediation (+8,000).
Employment in wholesale trade continued to trend up in
November (+10,000), driven by job growth in its durable goods
component (+14,000).
Employment in government declined by 99,000 in November.
Federal government employment was down by 86,000, reflecting a
loss of 93,000 temporary workers who had been hired for the 2020
Census. Employment in local government education continued to
trend down (-21,000).
Retail trade lost 35,000 jobs in November, and employment
in the industry is down by 550,000 since February. In November,
job losses occurred in general merchandise stores (-21,000);
sporting goods, hobby, book, and music stores (-12,000);
electronics and appliance stores (-11,000); and health and
personal care stores (-8,000). These job losses were partially
offset by small gains in furniture and home furnishings stores
(+6,000) and automobile dealers (+4,000).
Employment in leisure and hospitality changed little in
November (+31,000). Within the industry, employment in food
services and drinking places changed little over the month
(-17,000) and is down by 2.1 million since February. Employment
in arts, entertainment, and recreation increased by 43,000 in
November.
Employment in other major industries--including mining,
information, and other services--showed little change over the
month.
Average weekly hours for all private-sector workers were
unchanged in November at 34.8 hours. The average workweek for
manufacturing decreased by 0.2 hour to 40.3 hours.
Average hourly earnings of all employees on private nonfarm
payrolls increased by 9 cents in November to $29.58.
Turning to the labor market indicators from the household
survey, the unemployment rate edged down to 6.7 percent in
November. The number of unemployed people, at 10.7 million,
continued to trend down. Although considerably lower than the
recent peaks in April of this year, both measures are nearly
twice their pre-pandemic levels in February.
The number of unemployed people on temporary layoff
decreased by 441,000 to 2.8 million in November. The number of
permanent job losers, at 3.7 million, was little changed over
the month. The number of people who became unemployed after
completing temporary jobs increased by 155,000 to 978,000 in
November.
The unemployment rate declined in November for adult women
(6.1 percent). The rates for adult men (6.7 percent), teenagers
(14.0 percent), Whites (5.9 percent), Blacks (10.3 percent),
Asians (6.7 percent), and Hispanics (8.4 percent) showed little
or no change over the month.
Among the unemployed, the number of people searching for
work for 27 weeks or more (often referred to as the long-term
unemployed) increased by 385,000 in November to 3.9 million.
These long-term unemployed accounted for 36.9 percent of the
unemployed. The number of people who were jobless 15 to 26 weeks
decreased by 760,000 to 1.9 million. The number of people who
were unemployed for 5 to 14 weeks and people unemployed for less
than 5 weeks were little changed, at 2.4 million and 2.5
million, respectively.
The labor force participation rate edged down to 61.5
percent in November and is 1.9 percentage points lower than in
February. The employment-population ratio, at 57.3 percent,
changed little in November; the rate is 3.8 percentage points
lower than in February.
In November, the number of people who usually work full
time increased by 752,000 to 124.3 million, and the number who
usually work part time decreased by 779,000 to 25.4 million.
The number of people at work part time for economic reasons
in November was little changed at 6.7 million. (This group
includes people who usually work full time and people who
usually work part time.) The number of people affected by this
type of underemployment was 4.2 million lower than a recent peak
in April 2020 but 2.3 million higher than in February.
The number of people not in the labor force who currently
want a job increased by 448,000 in November to 7.1 million,
following a decline of 539,000 in October. This measure is 2.2
million higher than in February.
Among those who were not in the labor force but wanted a
job, 2.1 million were considered marginally attached to the
labor force in November, little changed from October. (People
who are marginally attached to the labor force had not actively
looked for work in the 4 weeks prior to the survey but had
looked for a job within the last 12 months.) The number of
discouraged workers, a subset of the marginally attached who
believed that no jobs were available for them, at 657,000 in
November, also changed little over the month.
Since March, household survey interviewers have been
instructed to classify employed people absent from work due to
temporary, coronavirus-related business closures or cutbacks as
unemployed on temporary layoff.
As occurred in previous months, some workers affected by
the pandemic who should have been classified as unemployed on
temporary layoff in November were instead misclassified as
employed but not at work. However, the share of responses that
may have been misclassified was considerably smaller in recent
months than at the onset of the pandemic.
For March through October, BLS published an estimate of
what the unemployment rate would have been had misclassified
workers been included among the unemployed. Repeating this same
approach, the overall November unemployment rate would have been
0.4 percentage point higher than reported. However, this
represents the upper bound of our estimate of misclassification
and probably overstates the size of the misclassification error.
Additional information is available on the BLS website at
www.bls.gov/covid19/employment-situation-covid19-faq-november-
2020.htm.
Looking at supplemental pandemic-related measures from the
household survey (these supplemental data are not seasonally
adjusted), 21.8 percent of employed people teleworked in
November because of the coronavirus pandemic, up from 21.2
percent in October. These data refer to employed people who
teleworked or worked at home for pay at some point in the last 4
weeks specifically because of the coronavirus pandemic.
In November, 14.8 million people reported that they had
been unable to work because their employer closed or lost
business due to the pandemic--that is, they did not work at all
or worked fewer hours at some point in the last 4 weeks due to
the pandemic. This measure was little changed from the prior
month. Among those who reported in November that they were
unable to work because of pandemic-related closures or lost
business, 13.7 percent received at least some pay from their
employer for the hours not worked, up 2.0 percentage points from
October.
About 3.9 million people not in the labor force in November
were prevented from looking for work due to the pandemic, up
from 3.6 million in October. (To be counted as unemployed, by
definition, individuals must either be actively searching for
work or on temporary layoff.)
In summary, total nonfarm payroll employment increased by
245,000 in November, and the unemployment rate edged down to 6.7
percent.