11 June 2020

2020- n° 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.

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%).

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.

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%).

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.