The US Unemployment rate fell to 13.3%, almost 7% lower than original projections for the month. Top government officials, like Senior Economic Advisor Kevin Hassett, expected that expected a number closer to 20%, or even higher. Government reports show that 2.5 million jobs were added to the economy last month. In trading today, Wall Street responded positively to the unexpected numbers. While the unemployment rate is still stunningly high, the statistics indicate an encouraging resilience in the economy. Is the economy beginning to stabilize? And, if so, what industries will be hiring in the days to come?
The Bureau of Labor Statistics reports that the number of unemployed persons fell by 2.1 million, to “only” 21.0 million Americans. Are businesses still on pause, or are are Americans seeing new opportunities for work? It’s a little bit of both, depending on your industry. Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, says that “At 13.3%, we are still at a higher rate than any that we hit during the financial crisis in 2007–09, but as long as that [unemployment rate] continues to move lower, it will show that the re-opening of the economy is proceeding smoothly.” But is it?
Job seekers are looking for answers and wondering if temporary losses will become permanent. People are looking for direction amidst uncertainty and change. Laid-off workers want to know: is my job gone for good? Fortunately, three key sectors are showing signs of hiring, according to Indeed Chief economist, Jed Kolko.
In an interview with Alison Kosik, Kolko begins by sharing some sobering statistics: overall job postings on Indeed are down by 34% versus last year. “That’s still better than what we saw just four weeks ago. Four weeks ago, postings were down by as much as 40%,” Kolko said. Here are the hardest-hit sectors – these industries are not in growth mode:
- Hospitality and Tourism: Down 62.5% vs. May 2019
- Arts and Entertainment: Down 55.7% vs. May 2019
- Childcare: Down 52.9% vs. May 2019
In contrast, Kolko says that there is an uptick in businesses that are starting to reopen. Here are the top three sectors for hiring, according to Indeed:
- Beauty and Wellness
- Logistics/Delivery jobs
According to Monster, companies like Honeywell, Liberty Mutual and Johnson Controls are looking for help. This list of the top 100 Companies Now Hiring will tell you more. LinkedIn reports that remote work is up by 28%, reinforcing the importance of the home office in the new normal. Entrepreneurship continues to thrive in unexpected ways, as online marketplace Etsy.com is helping 2.7 million female entrepreneurs find new income streams – part of a 79% surge in the company’s business last month.
The stock market responded to the unexpectedly positive jobs report with a 1,000 point surge today, according to Forbes. The uptick represents a 3.8% increase, which was echoed in the NASDAQ (up 2.2%) and the S&P500 (up 3%).