Published April 05, 2020 11:49 am EST
by Richard Cason, Editor of NewsMovesMarketsForex
United States Non-farm payrolls decline by 701,000 jobs for the month of March 2020. The Unemployment rate rose drastically higher to 4.4 percent, signaling the worst is looming in the horizon yet to come.
Coronavirus (COVI-19) Temporally Devastates U.S. Economy
The Coronavirus (COVI-19) Pandemic has continued to wreak havoc upon the United States Economy; causing President Trump to issue health and social-distancing guideline restrictions nation wide. These various restrictions have prompted most states to issue stay at home orders to all of its citizens. Therefore, basically temporally shutting down most business and commerce activities throughout 82% of all North America.
The unemployment rate moves higher to almost a full percentage point in one single month. It is important to note that this has been the largest over-the-month increase in rate within 45 years.
Over 10 million american workers file for jobless claims within the last two weeks. President Trump in a press conference addressing the nation referring to the (COVID19) virus – stating that “were at war with an invisible enemy”.
The hardest hit industries have been the hospitality and leisure industries which lost 459,000 jobs in the month of March 2020. Most of the job lost occurred within the food services and drinking places sectors as well as the accommodation industries which contracted -29,000 jobs in the month of March.
U.S. Economist projected Jobs would decline only by –100,000 jobs for the month of March 2020. March Non Farm Payroll numbers astronomically reflect the devastating punch of the coronavirus (COVID-19) has landed on the previous resilient U.S. Economic Labor Markets.
January’s 2020 NFP release revised down from 214,000 jobs add to the U.S. Jobs market. February was revised up by +2000 from +273,000 to +275,000.
See the full story of previous Feb 2020 NFP numbers; Non-Farm Payrolls rise higher to 273,000 jobs, unemployment holds at February 2020.
U.S. Non Farm Payrolls Jobs Report (MARCH 2020)
 | |||||
|---|---|---|---|---|---|
| Time | Event | Actual | Forecast | Previous | |
| Friday, April 3, 2020 | |||||
08:30 |  USA | Nonfarm Payrolls (FEB) | -701K | -100K | 275K |
| 08:30 | USA | Unemployment Rate (FEB) | 4.4% | 3.8% | 3.5% |
| 08:30 | USA | Private Nonfarm Payrolls (FEB) | -701K | -163K | 242K |
| 08:30 | USA | Participation Rate (FEB) | 62.7% | 63.3% | 63.4% |
| High | Volatility Expected | |
Unemployment rate and ADP National Employment Report
- The unemployment rate moved higher 0.9 percent to 4.4% for month of March 2020, while the private nonfarm payrolls average hourly earning rose by $0.10 $28.62, following a $28.44 result in January. Over the last 12 month’s the average hourly earnings have increased 3.1% .
- Bureau of Labor Statistics reports that employment rose in various sectors of Construction employment down 29K, Health Care decreased by 43,000 jobs, Food Services and Drink Places declined by -417,000 jobs . While the Professional and business services decreased by 52,000 and Retail Trade dropped by -46,000 jobs for the Month of March 2020 .
- ADP National employment report: Private sector increased -27,000 Jobs for the month of March 2020
- Small Business -97000 National franchise decreased -4,300 Jobs
- Midsize Business up to 7,000 and Large Business increased by 56,000 jobs. Which continues to maintain incrementally increases at lackluster pace over the 1st quarter of 2020.
- It is important to note that Nonfarm Payrolls measures the change in the number of people employed during the previous month, excluding the farming industry. Job creation is the foremost indicator of consumer spending, which accounts for the majority of economic activity.
- Additionally, according to the United States Bureau of Labor Statistics …The unemployment rates for Major worker groups..Adults men 4.0%, Adult women 4.0%, Teenagers 14.3%, Whites 4.0%, Blacks ticked higher to 6.7%, Asians 4.1%, and Hispanics 6.0% displayed very little to no change in 0ver the month.
- Revisions: With these revisions, employment gain in January and February combined were 57,000 less than previously reported. After revisions, job gains have averaged 245K per January and February.
