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Collage of Idaho, Michigan, New York, Hawaii, Nevada, New Jersey, COVID-19 particle, a chart, and a briefcase with money on it
About the Author

Henry Reeve
sminfo@bls.gov

Henry Reeve is an economist in the Office of Employment and Unemployment Statistics, U.S. Bureau of Labor Statistics.

Article Citations

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11/12/2026

Postpandemic employment recovery by industry sector and selected states

This article uses data from the U.S. Bureau of Labor Statistics (BLS) Current Employment Statistics (CES) program to analyze employment declines as a result of the COVID-19 pandemic, as well as the subsequent employment recovery, across industry sectors and selected states. Employment is indexed to February 2020 to facilitate comparisons across industry sectors and states, and the analysis extends through September 2025. Because COVID-19 infection rates and related government mandates across the United States varied, the timing and extent of employment recovery differed across industry sectors and states. This article highlights the leisure and hospitality industry sector, which experienced the most severe employment contraction and a prolonged return to its prepandemic level.

According to data from the U.S. Bureau of Labor Statistics (BLS) Current Employment Statistics (CES) survey, the COVID-19 pandemic resulted in some of the largest employment swings in U.S. history.1 The first U.S. cases of COVID-19 were reported in January 2020.2 By March 2020, as case numbers rose, governments implemented business closures, restricted public gatherings, and encouraged voluntary physical distancing by individuals, which resulted in substantial economic disruption. States and organizations adopted different timelines for easing restrictions, and the federal public health emergency formally ended on May 11, 2023.3

This article uses CES data to analyze the impact of the COVID-19 pandemic on employment across major industry sectors and states. To allow relative comparisons across industry sectors and states that may have very different employment levels, the article indexes employment levels to February 2020—the month before the World Health Organization declared COVID-19 a global pandemic on March 11, 2020.4 Figures are expressed in terms of percentage of this February 2020 value. For example, if employment in an industry sector was 100,000 in February 2020, the indexed value would be 100. If employment fell to 80,000, that would result in an indexed value of 80. The month of employment recovery is the first month when the indexed employment level returned to 100. This article analyzes data through September 2025.

National employment analysis

This section of the article focuses on analyzing national employment data. In April 2020, total private employment for the United States dropped to 83.8 percent of its February 2020 level. (See chart 1.) This represented a reduction of almost 21 million jobs from February 2020 to April 2020. Total private employment returned to its prepandemic level in April 2022, taking 2 years to recover from those 2 months of job losses. As of September 2025, total private employment was at 104.3 percent of its prepandemic level.

The COVID-19 pandemic and efforts to contain it had varied effects on different industries. Some industries saw a large, immediate impact, especially those with a strong connection to travel or face-to-face customer service. The leisure and hospitality industry sector, which includes restaurants, hotels, and in-person recreational experiences, lost nearly half of its jobs between February and April 2020 (indexed value of 51.6). In contrast, financial activities employment saw a minimal short-term impact as it dropped to a low of 96.8 percent of its prepandemic employment in April 2020. Industries recovered from pandemic-related job losses at different speeds. As of September 2025, some industries had not fully recovered to their prepandemic level at a national level; some industries also recovered and then fell back below their prepandemic level. (See table 1.)

Table 1. Pandemic employment recovery by major industry sector
Major industry sectorPandemic employment low
(Index, February 2020 = 100.0)
Month of employment lowSeptember 2025 employment
(Index, February 2020 = 100.0)
Month of employment recovery

Mining and logging

78.8February 202188.5–

Construction

85.7April 2020108.5February 2022

Durable goods manufacturing

88.3April 202098.1August 2022

Nondurable goods manufacturing

91.0April 2020100.4February 2022

Wholesale trade

93.1April 2020102.7March 2022

Retail trade

85.4April 202099.6February 2022

Transportation and warehousing

91.5April 2020114.6November 2020

Information

89.7May 202098.2September 2021

Financial activities

96.8April 2020103.6October 2021

Professional and business services

89.5April 2020104.1August 2021

Private educational services

85.7April 2020106.5April 2023

Healthcare and social assistance

89.0April 2020112.8October 2022

Leisure and hospitality

51.6April 2020100.1September 2025

Other services

76.0April 2020101.2March 2024

Note: Dash indicates data not applicable. Indexes in this table are calculated using seasonally adjusted employment data.

Source: U.S. Bureau of Labor Statistics.

Unlike most major industry sectors, mining and logging was losing jobs prior to the onset of the pandemic, although the pandemic accelerated its job losses. In addition, mining and logging had the longest recovery of any major industry sector. Initially, employment gradually declined and reached its lowest postpandemic level in February 2021, nearly a year after the onset of the pandemic. In July 2023, employment reached a relative high, although still below its prepandemic level as of September 2025. Since July 2023, employment continued to decline. By September 2025, it had the lowest indexed value (88.5 percent) of any industry sector compared with its prepandemic employment level. In September 2025, mining and logging employed 605,000 workers, compared with 684,000 in February 2020.

After losing 1.1 million jobs from February 2020 to April 2020, the construction industry sector recovered from its pandemic-related job losses in February 2022. By September 2025, the construction industry sector recovered all of its job losses and had grown to an employment level of 8,255,000, or 108.5 percent of its prepandemic level.

Durable goods manufacturing employment had been declining for over a year prior to the onset of the pandemic. However, the pandemic-fueled job losses were more severe than the prepandemic losses. By August 2022, durable goods employment recovered from these pandemic-related losses. By July 2024, durable goods employment slipped below its prepandemic level again, after peaking at 100.9 percent of its prepandemic employment in January 2023. Nondurable goods manufacturing employment recovered from the pandemic in February 2022 and, as of September 2025, was at 100.4 percent of its prepandemic level.

The transportation and warehousing industry sector saw the fastest employment recovery from the pandemic, returning to its prepandemic level in November 2020—the first major industry sector to do so. It continued to add jobs, and in September 2025, was at 114.6 percent of its prepandemic employment, though it peaked at 115.8 in February 2025. September 2025 represented a gain of approximately 841,000 jobs over its prepandemic level in February 2020. This increase was driven by growth in the couriers and messengers component industry, which added jobs throughout the pandemic to fulfill online shopping needs.5

Information employment saw a strong recovery and was second to transportation and warehousing, as of November 2022, in terms of its percentage of prepandemic employment. However, November 2022 marked an employment high and the information industry sector started losing jobs, falling from 107.0 percent of its prepandemic employment to below its prepandemic level in September 2024. As of September 2025, information was at 98.2 percent of its prepandemic employment level.

Financial activities employment saw a small impact from the pandemic, dropping to a low of 96.8 percent of its prepandemic employment in April 2020. The industry sector returned to its prepandemic employment level by October 2021, and by September 2025, was at 103.6 percent of its prepandemic level.

Leisure and hospitality—the major industry sector with the largest pandemic-related job losses—dropped to 51.6 percent of its prepandemic employment by April 2020. The industry sector lost almost 8.2 million jobs in March and April 2020. Leisure and hospitality employment initially saw a quick recovery to 78.8 percent of its prepandemic employment in October 2020 but struggled for several months. Employment dropped to 75.8 percent in December 2020, coinciding with a new virus variant, and grew slowly afterward.6 By September 2025, the industry sector had essentially recovered to its prepandemic level.

The leisure and hospitality industry sector comprises two major component industries: arts, entertainment, and recreation; and accommodation and food services. (See chart 2.) As of September 2025, arts, entertainment, and recreation employment expanded above its prepandemic level (indexed value of 108.2), while accommodation and food services employment had not. Accommodation and food services dominates the leisure and hospitality industry sector, making up 84.4 percent of total employment, but was at 98.7 percent of its prepandemic employment in September 2025.

The other services industry sector, which includes personal and laundry services, saw a smaller drop than leisure and hospitality and then had a mixed recovery. Other services employment fell to 76.0 percent of its prepandemic level in April 2020 and returned to 90.2 percent in October 2020. Employment returned to its prepandemic level in March 2024. As of September 2025, other services was at 101.2 percent of its prepandemic employment.

State employment analysis

This section of the article focuses on analyzing employment data by state. Nationally, total private employment, as discussed above, reached a low of 83.8 percent of its prepandemic level in April 2020. Two years later, in April 2022, employment returned to its prepandemic level. As of September 2025, employment was at 104.3 percent of its prepandemic level. Some states across the nation recovered employment faster, or slower, much like different industries did. (See chart 3.)

Among the 50 states, Puerto Rico, and the District of Columbia, 44 states were at or above their prepandemic employment levels in September 2025. Illinois, Iowa, Maryland, and Oregon recovered to prepandemic employment levels but fell below those levels by September 2025. (See chart 4.) The District of Columbia, Hawaii, Massachusetts, and Vermont were the four states that did not recover to prepandemic levels. Idaho and Utah led the nation in recovery, with both states reaching previous employment levels before the end of 2020. In contrast, employment in Hawaii reached a low in April 2020 and then a new low in September 2020. Michigan and Nevada had similar lows, compared with Hawaii, but experienced quicker recoveries.

Different COVID-19 restriction policies at the local and state level and differences in industry composition may have contributed to the varying speeds of the pandemic recovery. Several of the states (and one metropolitan area) that had employment recoveries that differed from the national average are highlighted below in table 2.

Table 2. Pandemic employment recovery by selected states and areas
State or areaPandemic employment low
(Index, February 2020 = 100.0)
Month of employment recoverySeptember 2025 employment
(Index, February 2020 = 100.0)

National average

83.8April 2022104.3

Hawaii

73.3–96.4

Idaho

88.7November 2020116.3

Michigan

73.6January 2023100.6

Nevada

74.6December 2021110.5

New York–Newark–Jersey City, NY–NJ metro area

78.1November 2022102.3

Note: Dash indicates data not applicable. Indexes in this table are calculated using seasonally adjusted employment data, except for the New York–Newark–Jersey City, NY–NJ metro area, which uses not seasonally adjusted employment.

Source: U.S. Bureau of Labor Statistics.

Individual state and area highlights

This section highlights selected states and areas whose employment recovery patterns differed from the national trend.

Hawaii

Hawaii stands out from much of the continental United States because of its geographic distance and tourism. Hawaii hit two separate lows, at 73.7 percent of its prepandemic employment level in April 2020 and then again at 73.3 percent in September 2020. As of September 2025, the state was at 96.4 percent of its prepandemic private-sector employment. Few major industry sectors had returned to prepandemic levels. (See chart 5.)

Hawaii has a disproportionately large leisure and hospitality industry sector, which was heavily impacted by the pandemic and associated public health measures. Nationally, about 13 percent of prepandemic private-sector employment was in leisure and hospitality, but in Hawaii it was about 24 percent of the state’s prepandemic private-sector employment. (See chart 6.)

In addition to having a larger leisure and hospitality industry sector, Hawaii’s leisure and hospitality employment took longer to recover than at the national level and, as of September 2025, had still not fully recovered. (See chart 7.) The leisure and hospitality index fell to 42.1 percent of its prepandemic level in May 2020 and again to 41.3 percent in September 2020. As of September 2025, the index was at 94.3 percent of its prepandemic level. The employment impact of the deadly August 2023 fires on Maui, a Hawaiian island, is visible in chart 7, causing a small dip in leisure and hospitality employment.7

Idaho

Idaho saw one of the smallest impacts on its employment from the pandemic, dropping to 88.7 percent of its prepandemic employment in April 2020. (See chart 8.) It also recorded one of the quickest recoveries to its prepandemic level in November 2020, tied with Utah. As of September 2025, it reached 116.3 percent of its prepandemic employment. A mix of industries and a growing population likely drove the recovery. Idaho is also one of the fastest growing states by population in recent years and was the seventh fastest growing state in 2024.8

Idaho’s construction industry sector outpaced the national construction industry sector and led Idaho in its recovery. Whereas national construction posted declines for much of the first year of the pandemic, Idaho’s construction industry sector returned to its prepandemic employment level in May 2020 and, as of September 2025, was at 136.9 percent of its prepandemic employment.

Employment in leisure and hospitality in Idaho also outperformed employment in leisure and hospitality at the national level. (See chart 9.) Idaho’s leisure and hospitality employment surpassed its prepandemic level in July 2021 and, as of September 2025, was at 111.9 percent of its prepandemic employment.

Nevada

Nevada dropped to a low of 74.6 percent of its prepandemic employment in April 2020 but recovered much faster than Hawaii. (See chart 10.) Nevada returned to its prepandemic level in December 2021. As of September 2025, the state was at 110.5 percent of its prepandemic employment.

Like Hawaii, Nevada’s leisure and hospitality industry sector, closely tied to tourism, was hit hard by the pandemic but recovered much faster. (See chart 11.) 

Also, like Hawaii, leisure and hospitality made up a disproportionate part of the prepandemic employment mix (28 percent of its prepandemic employment in Nevada, compared with 13 percent of prepandemic employment nationally and 24 percent of prepandemic employment in Hawaii). (See chart 12.)

Nevada began easing its pandemic-related restrictions in May 2020.9 Nevada’s leisure and hospitality industry sector caught up with the indexed national average in June 2021 and returned to its prepandemic level in December 2023. As of September 2025, Nevada’s leisure and hospitality industry sector was at 101.3 percent of its prepandemic employment.

Michigan

Like Nevada, Michigan experienced a sharp drop, falling to 73.6 percent of its prepandemic employment level in April 2020. The state returned to its prepandemic level in January 2023.

The state’s leisure and hospitality industry sector recovered from a low of 44.4 in April 2020 to 79.2 percent of its prepandemic employment level in October 2020. (See chart 13.) From October 2020 to December 2020, there was a second decline of leisure and hospitality employment down to 62.3 percent of its prepandemic level. Unlike Nevada or Hawaii, leisure and hospitality in Michigan did not make up a larger proportion of the workforce compared with the national average. Leisure and hospitality in Michigan returned to its prepandemic employment level in December 2023.

New York–Newark–Jersey City, NY–NJ

New York–Newark–Jersey City, NY–NJ, is a metropolitan statistical area (MSA) provided for comparison to other states, with a mix of urban, suburban, and rural areas. The New York MSA is the largest MSA in the United States, with 20 million people.10

Private-sector employment in the New York MSA dropped to 77.4 percent of its prepandemic level in April 2020, lower than national employment, and has continued to lag. (See chart 14.) Employment returned to its prepandemic level in November 2022. New York MSA data are not seasonally adjusted (except for total private), and so seasonal swings remain visible in chart 14. As of September 2025, the area’s employment was at 102.3 percent of its prepandemic level, down from a high of 105.0 percent in December 2024.

The New York MSA’s leisure and hospitality industry sector made up 11.2 percent of its prepandemic private-sector employment, compared with 13 percent of prepandemic private-sector employment nationally, and was hit harder than the national industry sector. (See chart 15.) Employment in the New York MSA’s leisure and hospitality industry sector reached a low of 34.3 percent of its prepandemic level in April 2020. As of September 2025, it was slightly above its prepandemic level at 100.4 percent. Employment in many other industries in the New York MSA as of September 2025 was still below their February 2020 levels, such as retail trade and construction, while information had fallen back below its prepandemic level. Note that BLS aggregates mining, logging, and construction within the New York MSA as one industry. Transportation and warehousing, financial activities, professional and business services, and private education and health services were above their February 2020 employment by September 2025.

Conclusion

Employment patterns in the wake of the COVID-19 pandemic show that the magnitude and timing of employment recovery differs by industry and by state. After shedding more than 20 million jobs at the onset of the pandemic, the U.S. private sector recovered to its prepandemic employment level in April 2022 and continued to expand through September 2025. Some major industry sectors, such as leisure and hospitality, were more severely affected, while others such as transportation and warehousing quickly expanded well above their prepandemic levels. Among states, recovery speeds were driven by a mix of geographic location, industry mix, and local restrictions, with some states facing heavier employment impacts from the COVID-19 pandemic and recovering at a slower pace.

Suggested citation:

Henry Reeve, "Postpandemic employment recovery by industry sector and selected states," Monthly Labor Review, U.S. Bureau of Labor Statistics, November 2026, https://doi.org/10.21916/mlr.2026.31

Notes

1 The U.S. Bureau of Labor Statistics (BLS) Current Employment Statistics (CES) program, which provides detailed industry data on employment, hours, and earnings of workers on nonfarm payrolls, is a monthly survey of about 119,000 businesses and government agencies representing approximately 622,000 individual worksites. For more information on the program’s concepts and methodology, see “Current Employment Statistics - National” in “Handbook of Methods,” U.S. Bureau of Labor Statistics, last modified February 28, 2025, https://www.bls.gov/opub/hom/ces or “Current Employment Statistics - State and Metro Area” in “Handbook of Methods,” U.S. Bureau of Labor Statistics, last modified March 12, 2026, https://www.bls.gov/opub/hom/sae. To access CES data, see “Current Employment Statistics - CES (National)” https://www.bls.gov/ces or “State and Metro Area employment, hours, & earnings” U.S. Bureau of Labor Statistics, https://www.bls.gov/sae. The CES data used in this article are seasonally adjusted unless otherwise noted. For more details on employment swings as a result of the COVID-19 pandemic, see Ryan Ansell and John P. Mullins, “COVID-19 ends longest employment recovery and expansion in CES history, causing unprecedented job losses in 2020,” Monthly Labor Review (June 2021), https://doi.org/10.21916/mlr.2021.13.

2 Centers for Disease Control and Prevention, "CDC musuem COVID-19 timeline," July 8, 2024, https://www.cdc.gov/museum/timeline/covid19.html.

3 “End of the federal COVID-19 public health emergency (PHE) declaration,” Centers for Disease Control and Prevention, updated September 12, 2023, https://archive.cdc.gov/www_cdc_gov/coronavirus/2019-ncov/your-health/end-of-phe.html.

4 Centers for Disease Control and Prevention, “CDC museum COVID-19 timeline.”

5 Ryan Ansell and John P. Mullins, “COVID-19 ends longest employment recovery and expansion in CES history, causing unprecedented job losses in 2020.”

6 Centers for Disease Control and Prevention, “CDC museum COVID-19 timeline.”

7 “Preliminary after-action report: 2023 Maui wildfire,” U.S. Fire Administration Blog (blog), February 8, 2024, https://www.usfa.fema.gov/blog/preliminary-after-action-report-2023-maui-wildfire/.

8 Kyle Pfannenstiel, “Idaho’s population grows to over 2 million people, U.S. Census Bureau estimates,” Idaho Capital Sun, December 24, 2024, https://idahocapitalsun.com/2024/12/24/idahos-population-grows-to-over-2-million-people-u-s-census-bureau-estimates/.

9 Joyce Lupiani, “Timeline for coronavirus pandemic in Nevada,” Channel 13 Las Vegas News KTNV, March 14, 2021, https://www.ktnv.com/news/coronavirus/timeline-for-coronavirus-pandemic-in-nevada.

10 “New York-Newark-Jersey City, NY-NJ Metro Area,” Census Reporter, 2024, https://censusreporter.org/profiles/31000US35620-new-york-newark-jersey-city-ny-nj-metro-area/.