How’s the jobs recovery? Depends on the sector of the economy.
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We got a decent — but not great — economic report Friday to kick off the weekend. The Labor Department told us that employers kept bringing jobs back in July, extending the recovery from the mass layoffs we saw when the COVID-19 pandemic started back in March and April.
The economy added 1.8 million jobs overall in July. The unemployment rate fell to 10.2%. That’s a tad higher than the rate’s peak in the Great Recession but a marked improvement from April, when it hit almost 15%.
So which jobs are coming back, and which are going away?
If the losses early in the pandemic were a torrent — 22 million jobs washed away in just about six weeks — the rebound since then has been more like a steady current: around 9 million jobs gained back.
And the back-to-work flow has been strongest in low-wage service jobs that were savaged early on, according to Julia Pollak, labor economist at ZipRecruiter.
“The largest gains were in leisure and hospitality, and in retail,” she said.
Jobs stocking shelves at reopened stores, serving drinks at bars and restaurants, cleaning people’s teeth at dentists’ offices.
But job gains slowed considerably in July, compared to June.
“And that’s because as many cities and states had to pause their reopenings to fight back surges in COVID cases, businesses couldn’t really resume business as usual,” Pollak said.
The jobs recovery is doing better in sectors less affected by government COVID restrictions and consumers’ caution, said Robert Frick, corporate economist at Navy Federal Credit Union.
“Home construction — and construction in general — is doing well, manufacturing is doing relatively well,” Frick said. “A lot of those are important to the economy because it supports service jobs.”
But Pollak has a warning for professionals whose jobs depend on the consumer economy.
“Among high-wage occupations where most workers can work from home, that typically are recession-proof, we see stagnation and even continued decline,” she said.
COVID-19 Economy FAQs
What are the details of President Joe Biden’s coronavirus relief plan?
The $1.9 trillion plan would aim to speed up the vaccine rollout and provide financial help to individuals, states and local governments and businesses. Called the “American Rescue Plan,” the legislative proposal would meet Biden’s goal of administering 100 million vaccines by the 100th day of his administration, while advancing his objective of reopening most schools by the spring. It would also include $1,400 checks for most Americans. Get the rest of the specifics here.
What kind of help can small businesses get right now?
A new round of Paycheck Protection Program loans recently became available for pandemic-ravaged businesses. These loans don’t have to be paid back if rules are met. Right now, loans are open for first-time applicants. And the application has to go through community banking organizations — no big banks, for now, at least. This rollout is designed to help business owners who couldn’t get a PPP loan before.
What does the hiring situation in the U.S. look like as we enter the new year?
New data on job openings and postings provide a glimpse of what to expect in the job market in the coming weeks and months. This time of year typically sees a spike in hiring and job-search activity, says Jill Chapman with Insperity, a recruiting services firm. But that kind of optimistic planning for the future isn’t really the vibe these days. Job postings have been lagging on the job search site Indeed. Listings were down about 11% in December compared to a year earlier.
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