8 September 2020

2020- n° 227

In Q2 2020, payroll employment dropped sharply again in the private sector and declined in the public services Payroll employment - second quarter 2020

Between the end of March and the end of June 2020, payroll employment dropped by 0.9%, that is 215,200 net job losses after –2,0% (–499,700 jobs) in the previous quarter. At the end of June 2020, it returns to a level comparable to the end of March 2017. The decline concerns both the private sector, with 158,200 net job losses (–0.8%) and the public services with 57,100 net job losses (–1.0%). In the previous quarter the decline concerned almost exclusively the private sector. Over one year, payroll employment dropped by 572,900 (that is –2.3%): –513,800 in the private sector and –59,100 in the public service.

Temporary employment rebounded in the second quarter of 2020: +23.0%, that is +108,100 jobs. In this publication, temporary workers are accounted for within market services, whichever sector they carry out their assignment (industry, construction, market or non-market services). In each of these sectors, a large part of the short-term adjustment to the crisis was initially made in the first quarter through the drop in recourse to temporary work. The recourse to temporary work rebounded in the second quarter, while, excluding temporary work, payroll employment dropped by 1.3% (–323,400 jobs), more than in the previous quarter (–0.7%).

In the so-called «non-agricultural market sectors» field (industry, construction and market services), payroll employment has been measured in quaterly time series since the end of 1970. In the second quarter of 2020, it fell by 0.8% after –2.8% in the previous quarter, i.e. –3.6% over the semester. This is the largest semester decline recorded in this series. By way of comparison, in the middle of the economic crisis of 200/2009, non-agricultural market payroll employment had fallen by 1.7% between September 2008 and March 2009.

In the second quarter of 2020, temporary work rebounded: +23.0% compared to the previous quarter (that is +108,100 jobs), after an unprecedented drop in the previous quarter of 40.4% (–318,600 jobs). Monthly statistics (see "Documentation") show that temporary employment recovered as early as May, and increased again in June. Nevertheless, it remains well below its level of the previous year: –27.1%, or 215,300 jobs losses over one year.

In Q2 2020, industrial employment excluding temporary workers declined by 0.9% (–28,400 jobs) after –0.3% in the previous quarter (–10,400 jobs). Over a year, employment in this sector fell by 1.2%, that is 37,300 net job losses.

In construction, payroll employment excluding temporary workers stabilised: 0.0% after –0.2% in the previous quarter (–3,400 jobs). Over one year, employment remains higher than a year ago: +1,4% or +19,100 jobs.

In market services, payroll employment dropped by 0.9% that is 110,600 net job losses, after a 3.7% decline in the previous quarter (–466,500) which was largely due to temporary work. Excluding temporary work, employment in market services contracted sharply again: –1.9% or –218,700 jobs after –1.3% in the previous quarter (–147,900 jobs). The decline in the first semester of 2020 cancels out the increases of the last two years and employment in market services excluding temporary work almost reaches its level at the end of 2017. Excluding temporary work, payroll employment contracted in all the detailed industries, particularly in accommodation and food services (–7.6% or –82,800 jobs, back to its lowest level since the beginning of 2015), the "other services to households" (–2.9% or –37,000 its lowest level since the end of 2005), transportation activities (–1.3% or –18,100) and wholesale and retail trade (–0.9% that is –29,100).

Payroll employment in mainly non-market services dropped by 0.9% in the second quarter of 2020, that is 71,800 job destruction, following a moderate decline (–0.2%) in the previous quarter. It returns to its lowest level since the third quarter of 2014. The decline is mainly due to public employment, which fell by 1.0% (–57,100 jobs) after remaining almost stable in the first quarter (–0.1%): in the civil service as well, the health crisis has limited the renewal of fixed-term contracts (non civil service positions, short-term workers, etc.).

Compared to the employment estimate published on 11 June 2020, the extent of the decline in payroll employment (private and public) in the first quarter of 2020 is almost unchanged (revised by +2,700).

Compared to the flash estimate published on 7 August 2020, the decline in payroll employment (in the private sector) in Q2 2020 has been accented by 38,800, that is –0.2 points, especially due to market services excluding temporary employment.