In the second quarter of 2024, the private-sector job market experienced a net decline, with job losses outstripping gains.
According to the latest data from the Business Employment Dynamics program, the sector saw a drop of 163,000 jobs during this period.
Here’s a closer look at the data:
- Gross Job Losses: 7.8 million
- Gross Job Gains: 7.6 million
- Net Decline: 163,000 jobs
This marks an increase in job losses compared to the previous quarter, with 639,000 more jobs lost. At the same time, gross job gains decreased slightly, dropping by 17,000 jobs from the previous quarter.
Industries Struggling the Most
The report reveals that eight out of 13 major industries faced more job losses than gains in Q2 2024. Among the hardest-hit sectors were:
- Professional and Business Services: -86,000 jobs
- Retail Trade: -71,000 jobs
- Construction: -58,000 jobs
- Leisure and Hospitality: -53,000 jobs
These industries experienced significant declines, contributing to the overall negative trend in the private sector. Despite these losses, the utilities sector saw no change, with job gains and losses balancing out at 16,000 jobs each.
A Few Industries Saw Positive Growth
While several industries faced declines, not all sectors were negatively impacted. Some industries reported net job increases:
- Education and Health Services: +148,000 jobs
- Other Services: +10,000 jobs
- Natural Resources and Mining: +9,000 jobs
- Financial Activities: +9,000 jobs
The education and health services sector stood out with a remarkable net gain of 148,000 jobs. This was driven by a gross gain of 1.22 million jobs, which far outweighed the gross loss of 1.07 million jobs in the sector.
Hiring? Post jobs for free with WhatJobs
No Change for Utilities
The utilities sector remained stable, with job losses and gains both standing at 16,000, resulting in no net change in employment.
Need Career Advice? Get employment skills advice at all levels of your career
Looking Ahead: Job Market Outlook
As we look toward the second half of 2024, the question remains: Will these trends continue, or can we expect a recovery in industries struggling the most?
- Professional and Business Services, Retail, and Leisure and Hospitality will need to adapt quickly to avoid further declines.
- Education and Health Services continues to shine as one of the more resilient sectors.
Understanding these fluctuations can help businesses, job seekers, and policymakers navigate the shifting job landscape in the coming months.
As we move further into 2024, the focus will be on reversing job losses in vulnerable industries while nurturing growth in those that remain strong.
