Informations Rapides · 9 March 2021 · n° 061

In Q4 2020, payroll employment has stalled Payroll employment - fourth quarter 2020

Between the end of September and the end of December 2020, payroll employment has stalled, after a sharp decline in the spring and a rebound in the summer. It decreased by 0.1%, that is 20,600 net job destructions, after having recovered by 1.7%, that is 425,600 net job creations in the third quarter. The slight decrease in the quarter was limited to the private sector (–0.1% that is –28,200 jobs). Conversely, payroll employment increased again in the public service (+0.1% that is +7,600 jobs). Overall, payroll employment remained below its level a year earlier: –1.1% that is −283,900 jobs. It is thus at a level comparable to that at the end of 2018. This is the first year end decline since 2012.

In this publication, temporary workers are accounted for in the temporary employment 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 by a drop in the use of temporary staff (–40.3% that is −317,300 jobs). Then the temporary employment has rebounded sharply: +22.9% and +22.8% in the second and the third quarters (that is +107,700 and +131,600 jobs). In the fourth quarter, temporary employment continues to recover: +5.1% (that is +36,200 jobs). However, it remains below its level of the previous year: –5.3%, that is 41,900 net job destructions over one year.

In the fourth quarter of 2020, payroll employment excluding temporary workers decreased again (–0.2% that is –56,800 jobs) after a rebound in the previous quarter (+1.2% that is +294,100 jobs). It is 1.0% below its level at the end of 2019 (–242,000 jobs).

Industrial employment excluding temporary workers fell again : –0.4% (–13,500 jobs) after –0.2% in the previous quarter (–7,400 jobs). Over one year, employment in this sector fell by 1.8%, representing 57,500 net job losses. This is the largest annual decline since 2010.

In market services excluding temporary workers, payroll employment declined sharply: –0.8% after +1.4% in the previous quarter (that is –91,200 jobs after +161,400). Employment had already fallen in the first half of the year (–3.0% that is −354,100 jobs). The decline in the fourth quarter was mainly concerns accommodation and food services (–4.9% that is –52,500 jobs) and the "other services to households" (–2.5% that is –32,500 jobs). Over one year, employment in market services excluding temporary workers decreased by 2.4% (–283,900 jobs). This is the first annual decline since 2009.

In construction, payroll employment excluding temporary workers remained dynamic: +0.7% after +1.5% in the previous quarter (that is +10,400 jobs after +21,000). Over one year, it increased by 2.2% that is +31,000 jobs.

Payroll employment in mainly non-market services increased by 0.4% in the fourth quarter of 2020, representing 29,100 net job creations, after a strong rebound in the third quarter (+1.5% that is +120,400 jobs). Over on year, the increased reached +0.8% (+68,000 jobs), particularly in the health care sector (+2.8% or +44,200 jobs).

Compared to the employment estimate published on 8 December 2020, the increase in payroll employment (private and public) in the third quarter of 2020 is slightly accentuated (revised by +24,500 to +425,600).

Compared to the flash estimate published on 5 February 2021, the decrease in payroll employment (in the private sector) in Q4 2020 has been attenuated by 11,400, (–0.1 points), to −28,200. This revision is especially due to construction excluding temporary employment.