Service with a masked smile: How weaker demand reduced employment in 2020

The FRED Blog has discussed how the COVID-19 recession reduced the demand for services and boosted the demand for goods, whereas in previous recessions it was the inverse. Today we examine the same dynamic from a different angle: how these changes in consumption patterns have affected industry-specific employment.
The FRED graph above shows the large initial declines in employment for goods-producing industries (e.g., construction and manufacturing) and service-providing industries (e.g., leisure and hospitality). We changed the units of the data into an index, with a base period set at the start of the latest recession, to make it easier to measure and compare changes over time. (This post from October 2020 also uses an index to track unemployment by age during recessions.)
After the initial double-digit declines, employment in goods-producing and service-providing industries gradually bounced back. At the time of this writing they were 5.6% and 7% below pre-recession levels, respectively. For

Federal Reserve Source

Author: RealEstate