Massive job losses extend across industries

The latest jobs report shows total jobs lost since February now total 21 million. While job losses extend across nearly all industries, those affected by social distancing have been affected most. For example, 60 percent of workers in the amusement, gambling, and recreation industry and nearly 50 percent in food services and drinking places have lost their jobs. But this month’s report shows that the devastation has become more widespread. Retail trade, construction, and manufacturing lost 4.5 million jobs—representing over 20 percent of all job losses so far. The warehousing and storage industry, while shedding jobs, has been less impacted due to continued consumer demand buoyed by online purchases. Over the next few months, as more businesses begin to reopen, we can expect millions of people to return to work. However, not all industries have hit bottom yet. Job losses might continue, especially in more cyclical industries like construction, manufacturing, and mining. Also, as consumers emerge from the crisis with lower incomes and weaker budgets, low consumer demand may prevent companies from restoring all the jobs they shed over the last two months.