March 2020 Job Report and Wages

Its been years since I last did an analysis of the jobs report. I initially did them before the 2008 Financial Crisis and several years after. 2009 was an interesting year to watch the numbers. I was lucky. I had a job.

For the last 10 years the jobs report has shown steady improvements.

Now is a new time. The numbers for March 2020 were a mix, mostly bad. The COVID-19 virus had just started to influence American businesses when the survey was taken. I anticipate April 2020 will parallel some of the worst months of 2009.

Here are the job market and compensation numbers for March 2020 (based on the job report):
Net loss of 701,000 jobs in the month

  • Analysts expected an overall drop of 84,000
  • Private sector payrolls decreased by 713,000
  • Private service producing industries shed 659,000
  • Goods producing industries shrank by 54,000


  • February was revised to a gain of 275,000 from an original reading of 273,000
  • January was revised to a gain of 214,000 from a reading of a 273,000 gain
  • Payroll processor ADP reported an employment loss of 27,000 jobs


  • 1.2 million people have been jobless for more than 6 months (long term unemployed) – it was 6.1 million in March of 2011
  • Employers announced plans to cut 222, 280 jobs in March. It was the most since January of 2009


Unemployment rate rose to 4.4%

  • The labor participation rate is 62.7% – a decrease of 0.7% in the month
  • The employment to population ratio is 60.0% – a drop of 1.1%
  • The U-6 report, which is a broader group to count (workers who are part time but want to be full time and discouraged worker), increased to 8.7% from 7.0% last month
  • PMI, a measure of manufacturing pace, is 46.6%. Anything above 50% means the machines are running
  • Service sector activity dropped to 52.5%, down from 57.3% last month. Holding relatively positive. A reading in the low 40s was expected


Specific Segment Job numbers:

  • Manufacturing down 18,000 jobs
  • Construction lost 29,000 jobs – averaged an increase of 17,583 jobs a month over the last year
  • Retailers lost 46,000 jobs
  • Leisure and Hospitality Services lost 459,000 jobs – this wiped out two years of gains
  • Government sector rose 18,000, 17,000 hired for census work
  • Education and Health Services dropped by 76,000 jobs
      • Health Care and Social Assistance lost 61,200
  • Professional and Business Services down by 52,000
      • 49,500 jobs lost in Temporary Help


Wage (can be revised):

  • The average weekly paycheck (seasonally adjusted) is $978.80
  • The average hourly earnings (seasonally adjusted) is $28.62 – an increase of 11 cents from last month (it was $19.30 in March of 2011)
  • Average weekly hours and overtime of production and nonsupervisory employees on private nonfarm payrolls by industry sector, seasonally adjusted is 33.4 hours


Bureau of Labor Statistics


Posted in:

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: