11 June 2020
N° 2020-145

At the end of the first quarter 2020, payroll employment dropped by 2.0 %Payroll employment - first quarter 2020

At the end of the first quarter of 2020, payroll employment dropped by 2.0%, that is 502,400 net job losses in one quarter. Payroll employment returned to its lowest level since the fourth quarter of 2017. The decline affects almost exclusively the private sector with 497,400 net job losses (that is –2.5%) while the public service loses 4,900 jobs (that is –0,1%). Over a year, payroll employment dropped by 304,700 (–1,2%). It declined by 317,200 in the private sector but increased by 12,400 in the public service.

Informations rapides
No 145
Paru le : Paru le 11/06/2020
Prochaine parution le : 08/09/2020 at 07:30 - second quarter 2020
Informations rapides  No 145 - June 2020
Warning

In this publication, the concept of employment refers to the international critera of the International labour organization (ILO). Employment includes both persons who have worked at least one paid houring during a given period, but also persons who have not worked for certain reasons (paid leave, sick leave, short-time working, etc. - in some cases subject to conditions of duration). During the health crisis which started in the first quarter, an unprecented number of employees have found themselves in a situation of partial unemployment or sick leave (including for childcare): these people are considered to be in employment.

In addition, the introduction of the “Déclaration Sociale Nominative” (DSN) from 2016 onwards to replace the “bordereau récapitulatif de cotisations” (BRC) affects transitorily the declarative behavior of businesses. During the ramp-up phase of the DSN, adjustments are made in the statistical processing chain of employment estimates to reflect these changes. These changes are likely to generate more revisions than usual to data.

Half a million net payroll job destruction in Q1 2020, mainly in temporary employment

At the end of the first quarter of 2020, payroll employment dropped by 2.0%, that is 502,400 net job losses in one quarter. Payroll employment returned to its lowest level since the fourth quarter of 2017. The decline affects almost exclusively the private sector with 497,400 net job losses (that is –2.5%) while the public service loses 4,900 jobs (that is –0,1%). Over a year, payroll employment dropped by 304,700 (–1,2%). It declined by 317,200 in the private sector but increased by 12,400 in the public service.

Temporary employment accounted for the largest share of the fall in the first quarter: –40.4%, that is –318,100 jobs. Excluding temporary work, payroll employment decreased by 0.7% (–184,300 jobs).

In the so-called «non-agricultural market» field (industry, construction and market services), payroll employment has been measured in quaterly time series since the end of 1970. In the first quarter of 2020, it fell by 2.8% (–485,400 jobs): this is the largest drop ever recorded in the series. In particular, the decline was much more pronounced than in the fourth quarter of 2008 (–0.8%) and in the first quarter of 2009 (–0.9%).

Variation in payroll employment

Variation in payroll employment ()
Industry Construction Market services Total Non-market services
2016-Q1 3160.4 1337.3 11795.2 24605.2 8018.3
2016-Q2 3150.8 1335.8 11847.8 24668.0 8033.3
2016-Q3 3147.4 1334.7 11903.7 24736.4 8042.4
2016-Q4 3139.8 1332.3 11948.9 24761.5 8046.4
2017-Q1 3135.0 1336.6 12025.2 24858.7 8053.6
2017-Q2 3135.3 1341.6 12100.8 24941.5 8060.0
2017-Q3 3138.3 1342.2 12169.5 25005.4 8049.2
2017-Q4 3144.0 1352.4 12261.8 25096.9 8038.2
2018-Q1 3146.2 1361.5 12294.8 25142.5 8041.5
2018-Q2 3147.0 1366.9 12320.5 25156.4 8023.4
2018-Q3 3149.4 1371.7 12345.0 25182.5 8020.5
2018-Q4 3156.4 1380.0 12388.2 25255.1 8033.1
2019-Q1 3163.7 1397.9 12452.9 25346.2 8035.3
2019-Q2 3165.4 1405.9 12485.1 25402.2 8048.1
2019-Q3 3166.2 1416.4 12517.7 25447.2 8046.9
2019-Q4 3167.0 1428.1 12590.6 25543.8 8057.6
2020-Q1 3155.7 1422.4 12122.2 25041.4 8042.0

Variation in payroll employment

  • Scope : France excluding Mayotte.
  • Sources: Acoss-Urssaf, Dares,INSEE

Temporary work is recording an historic decline

At the end of the first quarter of 2020, temporary work collapsed: –40.4% compared to the end of 2019 (i. e. –318,100 jobs). It went back to its 2009 level.

This is the largest decline in the quaterly series of temporary employment (available since the first quarter of 1990). By comparison, during the economic crisis of 2008-2009, temporary employment fell by 13.9% in Q4 2008 and by 13.0% in Q1 2009.

Excluding temporary work, payroll employment declined in all sectors, particularly in market services

In Q1 2020, industrial employment declined by 0.4% (–11,300 jobs). It was its first decline since the beginning of 2017. Over a year, industry loses 8,000 jobs (that is –0.3%).

In construction, payroll employment also decreased by 0.4% (–5,600 jobs). Employment in this sector had not declined since the end of 2016. Nevertheless, as a result of the growth in the previous quarters, employment in construction remains 24,500 above its level a year earlier (that is +1,8% over a year)..

In market services, payroll employment dropped by 3.7% that is 468,400 net job losses, mostly in temporary work. Excluding temporary work, it still collapsed strongly: –1.3% that is –150,300 jobs. The decrease in the first quarter of 2020 cancels out the increases of the three previous quarters and employment in market services (excluding temporary work) is almost back to its previous year's level. Payroll employement dropped sharply in accommodation and food service activities (−4,4% that is –50,600 jobs) and "other services to households" (−2,8% that is –37,400); less so in transportation activities (−0,9 % that is −12,200) and wholesale and retail trade (−0,7 % that is −22,400 jobs).

Finally, payroll employment in mainly non-market services decreased by 0.2% that is 15,500 jobs destruction. It remains slightly higher than its level a year earlier (+6,700 that is +0.1%).

Payroll employment change: thousands

SA data in thousands
Payroll employment change: thousands (SA data in thousands) - How to read it: In Q1 2020, net job destruction in market services amounted to 468,400 jobs from the previous quarter.
Change in 3 months Change in 1 year Level
2019 2020 2020 2020
Q4 Q1 Q1 Q1
Agriculture 0.5 -1.5 2.7 299.1
Goods-producing industries excl. Construction 0.8 -11.3 -8.0 3,155.7
of which : Manufacturing 0.5 -12.3 -9.3 2,776.1
Construction 11.7 -5.6 24.5 1,422.4
Market services 72.9 -468.4 -330.7 12,122.2
Temporary employment (*) -2.9 -318.1 -326.1 469.7
Excluding temporary work 75.8 -150.3 -4.6 11,652.5
Non-market services 10.7 -15.5 6.7 8,042.0
Total 96.6 -502.4 -304.7 25,041.4
Private sector 96.3 -497.4 -317.2 19,248.3
Public service 0.2 -4.9 12.4 5,793.1
  • (*) Temporary workers are recorded in services, regardless of the sector in which they carry out their mission effectively.
  • How to read it: In Q1 2020, net job destruction in market services amounted to 468,400 jobs from the previous quarter.
  • Scope: France excluding Mayotte.
  • Sources: Acoss-Urssaf, Dares, INSEE

Payroll employment change: percentage

SA data in %
Payroll employment change: percentage (SA data in %)
Change in 3 months Change in 3 months Change in 1 year
2019 2020 2020
Q4 Q1 Q1
Agriculture 0.2 -0.5 0.9
Goods-producing industries excl. Construction 0.0 -0.4 -0.3
of which : Manufacturing 0.0 -0.4 -0.3
Construction 0.8 -0.4 1.8
Market services 0.6 -3.7 -2.7
Temporary employment (*) -0.4 -40.4 -41.0
Excluding temporary work 0.6 -1.3 0.0
Non-market services 0.1 -0.2 0.1
Total 0.4 -2.0 -1.2
Private sector 0.5 -2.5 -1.6
Public service 0.0 -0.1 0.2
  • (*) Temporary workers are recorded in services, regardless of the sector in which they carry out their mission effectively.
  • Scope: France excluding Mayotte.
  • Sources: Acoss-Urssaf, Dares, INSEE

Payroll employment change

SA data in thousands
Payroll employment change (SA data in thousands)
Code Change in Change in Level
3 months 3 months 1 year
Naf 2019 2020 2020 2020
rev.2 Q4 Q1 Q1 Q1
AZ Agriculture 0.5 -1.5 2.7 299.1
DE Electricity, water supply, waste management 0.3 1,0 1.2 379.6
C1 Manufacture of food products beverage 3.3 -1.9 4.5 590.5
C2 Manufacture of coke, and refined petroleum products 0.0 0.0 -0.1 9.0
C3 Manufacture of computer, electronic and electrical products -0.3 -2.2 -2.0 417.6
C4 Manufacture of transport equipment -0.3 -0.3 0.3 344.2
C5 Other manufacturing -2.1 -8.0 -12.0 1,414.7
FZ Construction 11.7 -5.6 24.5 1,422.4
GZ Wholesale and retail trade 21.4 -22.4 8.4 3,181.9
HZ Transportation and storage 5.6 -12.2 -0.6 1,413.8
IZ Accommodation and food service activities 23.0 -50.6 -13.9 1,093.7
JZ Information and communication 4.6 -3.8 11.3 812.2
KZ Financial and insurance activities 1.3 -3.0 -1.1 879.0
LZ Real estate activities 1.1 -2.0 -2.3 245.2
MN Professional, scientific and technical activities 13.4 -336.9 -294.0 3211.6
of which : Temporary employment -2.9 -318.1 -326.1 469.7
OQ Public administration and defence 10.7 -15.5 6.7 8,042.0
RU Other service activities 2.5 -37.4 -38.4 1,284.8
  • (*) Temporary workers are recorded in services, regardless of the sector in which they carry out their mission effectively.
  • Scope: France excluding Mayotte.
  • Sources: Acoss-Urssaf, Dares, INSEE

Revisions

Compared to the employment estimate published on 10 march 2020, net job creation (private and public) in Q4 2019 is slightly enhanced (revised by +5,800).

Compared to the flash estimate published on 7 may 2020, the decline of payroll employment (in the private sector) in Q1 2020 has been accented by 43,600, that is –0.2 points, especially due to temporary work and construction.

Revisions of payroll employment in Q4 2019 and Q1 2019

SA data in thousands
Revisions of payroll employment in Q4 2019 and Q1 2019 (SA data in thousands)
Q4 2019 Q1 2020
payroll employment (10/03/2020) private scope only (flash estimate)
New estimate Revision New estimate Revision
Agriculture 0.5 0.0 -1.4 0.2
Goods-producing industries 0.8 1.0 -12.1 -2.1
Construction 11.7 1.6 -5.6 -11.3
Market services 72.9 4.3 -464.7 -26.8
Temporary work employment (*) -2.9 -1.0 -318.1 -26.3
Excluding temporary work 75.8 5.3 -146.6 -0.5
Non-market services 10.7 -1.2 -13.5 -3.5
Total 96.6 5.8 - -
Private sector 96.3 7.5 -497.4 -43.6
Public service 0.2 -1.9 - -
  • (*) Temporary workers are recorded in services, regardless of the sector in which they carry out their mission effectively.
  • Scope: France excluding Mayotte.
  • Sources: Acoss-Urssaf, Dares, INSEE


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