The educational and health services sector is no longer recession-proof

The FRED Blog has discussed how resilient the educational services industry has been to recessions: Employment levels in schools and colleges in New York City and California, for example, decreased at the start of the COVID-19 pandemic but bounced back mid-year.* With 2020 behind us, we use the Employment Situation data from the Bureau of Labor Statistics to revisit this topic.
The FRED graph above shows that since 1991, when data for educational services employment first became available, the year-to-year percent change in the number of persons employed has been positive in all but two years: 1992 and 2020. While the U.S. economy wasn’t in recession during any part of 1992, overall economic activity did contract starting in February 2020. That contraction resulted in a net loss of employment in educational services, health care, and social services for the year as a whole.
To go further back in time than 1991, we

Federal Reserve Source

Author: RealEstate