US Labor Market Collapses as COVID-19 Pandemic Takes Hold
The US labor market took a hit in March as the COVID-19 pandemic began to take hold. The Bureau of Labor Statistics reported that total nonfarm payroll employment fell by 701,000, marking the first decline since September 2010.
The unemployment rate rose to 4.4% as employers started cutting payrolls ahead of social distancing measures that eventually shut down large parts of the economy. Economists had predicted a smaller decline of 10,000 and an unemployment rate of 3.7%, but the actual numbers were significantly worse.
The hardest-hit industries were leisure and hospitality, which lost 459,000 jobs, mainly in food services and drinking places. Notable declines also occurred in health care and social assistance, professional and business services, retail trade, and construction.