Job Market Report: Slowing Recovery in August, Job Openings -18% from Pre-Crisis


September 1, 2020

Key Findings

  • U.S. job openings improved slowly in August, rising 2 percent month-over-month to 4.97 million. Job openings are still 18 percent below pre-crisis levels. There is still a long road ahead for the economic recovery.
  • Promising Industry Job Growth: Job openings in tech (+13.4 percent month-over-month) and consumer services (+3.9 percent) grew as consumer demand shifts to e-commerce and delivery services continue to hold strong. Health care job openings rose 2.8 percent, now just 6.7 percent short of pre-crisis levels, the best of any industry group.
  • Despite the explosion in remote work, job openings are recovering in New York City (+1.4 percent month-over-month), San Francisco (+2.7 percent) and San Jose (+3.4 percent). These high-cost metros are far from dead, though they do have a lot of ground to make up to recover to pre-crisis levels.

The economic recovery made slow but steady progress in August. Glassdoor’s latest Job Market Report shows that, as of August 24, 4.97 million job openings are available, a modest 2 percent increase month-over-month. Despite resurgent COVID-19 outbreaks in July and August, job openings have continued to improve. However, the rate of improvement is still agonizingly slow, which if it continues is a worrying sign. Job openings remain 18 percent below pre-crisis levels, leaving the labor market in a deep economic hole that will likely still take many months to crawl out of.

Optimism over a rapid V-shaped recovery is mostly doused by the slow recovery in job openings. If this glacial pace continues much longer, it raises the risk that temporary losses will turn into permanent economic damage.

Based on an analysis of employer job posting behavior in August on Glassdoor, 35 percent of employers have increased job openings. This is slightly more than the share of employers decreasing job openings (33 percent) and represents only a slow expansion in demand for new workers.

Change in Job Openings by Industry

  • Tech job openings increased 13.4 percent month-over-month. This large increase is driven primarily by shifting consumer demand for e-commerce and other online services. Consumer services (+3.9 percent month-over-month) shows a similar trend, with increases in job openings for delivery workers outweighing muted demand in other consumer services like tourism and entertainment.
  • Health care job openings rose 2.8 percent month-over-month. Health care providers have had to ramp up hiring to respond to sustained COVID-19 outbreaks across the country. Additionally, health care providers like dentists, which had to close or reduce staff early in the pandemic,  have been able to reopen. Health care job openings are now down only 6.7 percent from pre-crisis levels, the best of any industry group.

Change in Job Openings by Industry Group

Industry Group Month-over-Month % Change
U.S. Total 1.6%
Business Services 5.3%
Construction & Real Estate Services -1.1%
Consumer Services 3.9%
Finance & Insurance -0.5%
Food Services 0.0%
Health Care 2.8%
Manufacturing & Production 4.1%
Public Services -1.3%
Retail 1.3%
Tech 13.4%
Trade & Transportation -6.3%

Note: Data as of August 24, 2020

Source: Glassdoor Job Market Report, Sep 1, 2020

For more detailed data on job openings trends by industry and industry group, see our appendix below.

Too Early to Declare The Death of New York City or Silicon Valley 

The explosion of remote work has led some commentators to declare that high-cost areas like New York City and Silicon Valley are dead. Economically, that appears premature. Job openings in New York City (+1.4 percent month-over-month), San Francisco (+2.7 percent) and San Jose (+3.4 percent) all increased in August.

However, New York City and Silicon Valley did take a hit in job openings this year and accordingly have more ground to gain back. Job openings in these three metropolitan areas are still significantly down year-over-year, and those declines are still worse than the national average. 

Remote job openings are up 60.6 percent year-over-year. While fully remote job openings are still a fraction of total job openings in the U.S., and relatively small compared to openings in major metro areas like New York City, they are one of the few categories where job openings have actually grown year-over-year.

Change in Job Openings for Select Metros

Metro Job Openings Month-over-Month % Change Year-over-Year % Change
U.S. Total 4,970,465 1.6% -18.6%
Remote 17,297 18.5% 60.6%
Chicago, IL 168,575 9.4% -18.0%
Boston, MA 120,519 7.6% -22.8%
Philadelphia, PA 101,953 4.2% -12.7%
San Jose, CA 50,481 3.4% -30.8%
San Francisco, CA 111,273 2.7% -25.8%
Atlanta, GA 95,926 2.0% -24.6%
New York City, NY 245,681 1.4% -22.8%
Dallas-Fort Worth, TX 123,510 1.2% -21.0%
Denver, CO 55,874 1.0% -29.8%
Los Angeles, CA 158,639 -1.6% -29.0%
Washington, DC 144,353 -2.0% -26.7%
Houston, TX 72,771 -3.3% -27.6%
Phoenix, AZ 74,674 -4.6% -15.2%
Seattle, WA 88,629 -5.7% -21.9%

Note: Data as of August 24, 2020

Source: Glassdoor Job Market Report, Sep 1, 2020

The chart below shows how job openings have trended in New York City and Silicon Valley over the course of the crisis. Note that while both metro areas have under-performed the national average since June, they have also grown since the beginning of July in a sign that the recovery is progressing slowly even in these high-cost metro areas.

For more detailed data on job openings trends by state and for select metropolitan areas, see our appendix below.

Conclusion

Glassdoor data shows that job openings have inched upward in August and our data shows some momentum behind the recovery. But, being so far below pre-crisis economic activity, there’s a long runway to pick up those furloughed or laid off and get them back into the job market before the economy can take off again.

This Friday, the Bureau of Labor Statistics (BLS) will release the August jobs report, and it’s likely to show slow but steady job gains. While jobs growth is positive, the slow rate of improvement does raise the specter of a protracted recovery giving more time for long-term economic damage to accumulate.

Methodology

The job openings data for the selected dates is generated based on the methodology used in Glassdoor’s monthly Job Market Report, which provides a real-time view of hiring trends and wage growth across the U.S. based on millions of online jobs and salaries on Glassdoor. The data represents a snapshot of the number of job openings available on Glassdoor on the highlighted dates.

Week-over-week, month-over-month and year-over-year comparisons are based on the Mondays from the comparable period. Except where otherwise noted, no additional smoothing, averaging or seasonal adjustment for job openings data is performed. Because no smoothing or averaging takes place, the data may not be directly comparable to Glassdoor’s monthly Job Market Report.

Appendix

Each table may not sum up to total. For example, industry data may be missing for some employers.

Table A: Change in Job Openings by Industry

Job Openings Percent Change
Aug 24, 2020 Aug 17, 2020 Jul 27, 2020 Aug 26, 2019
Category Current Week Last Week Last Month Last Year Week-over-Week Month-over-Month Year-over-Year
Total 4,970,465 5,026,420 4,892,848 6,103,234 -1.1% 1.6% -18.6%
Accounting & Legal 33,379 33,495 32,362 54,486 -0.3% 3.1% -38.7%
Aerospace & Defense 56,694 58,228 56,398 105,645 -2.6% 0.5% -46.3%
Architecture & Civil Engineering 25,675 25,946 25,934 40,427 -1.0% -1.0% -36.5%
Arts & Entertainment 25,930 26,532 26,292 52,899 -2.3% -1.4% -51.0%
Automotive 86,213 85,873 83,287 105,563 0.4% 3.5% -18.3%
Banking & Financial Services 92,458 97,364 93,418 130,125 -5.0% -1.0% -28.9%
Beauty & Fitness 56,760 58,571 59,758 80,282 -3.1% -5.0% -29.3%
Biotech & Pharmaceuticals 68,036 68,120 64,424 74,229 -0.1% 5.6% -8.3%
Business Services 7,654 8,359 7,716 12,969 -8.4% -0.8% -41.0%
Computer Software & Hardware 112,638 112,018 103,135 154,572 0.6% 9.2% -27.1%
Construction 56,649 58,308 56,462 76,171 -2.8% 0.3% -25.6%
Consulting 55,232 56,109 55,721 86,983 -1.6% -0.9% -36.5%
Consumer Electronics 9,909 8,785 8,371 14,769 12.8% 18.4% -32.9%
Consumer Services 33,703 30,517 25,965 15,155 10.4% 29.8% 122.4%
Education & Schools 159,486 165,972 164,673 237,167 -3.9% -3.1% -32.8%
Energy & Utilities 33,665 34,156 33,905 51,564 -1.4% -0.7% -34.7%
Facilities 45,125 46,927 45,545 51,154 -3.8% -0.9% -11.8%
Farming & Agriculture 8,673 8,974 8,613 9,821 -3.4% 0.7% -11.7%
Government 121,249 122,720 119,429 130,418 -1.2% 1.5% -7.0%
Health Care & Hospitals 787,185 807,176 767,767 838,898 -2.5% 2.5% -6.2%
Information Technology 101,440 109,064 106,711 157,243 -7.0% -4.9% -35.5%
Insurance 61,780 62,578 61,591 80,194 -1.3% 0.3% -23.0%
Internet & Tech 169,150 120,038 128,117 62,407 40.9% 32.0% 171.0%
Manufacturing 179,188 178,878 168,715 230,435 0.2% 6.2% -22.2%
Marketing & Advertising 65,483 66,473 56,944 67,466 -1.5% 15.0% -2.9%
Media & Publishing 13,046 13,417 12,626 26,234 -2.8% 3.3% -50.3%
Nonprofit 55,643 57,542 56,822 72,593 -3.3% -2.1% -23.3%
Private Security 22,866 23,201 22,608 23,645 -1.4% 1.1% -3.3%
Real Estate 46,192 47,961 47,575 51,491 -3.7% -2.9% -10.3%
Restaurants & Bars 460,614 461,251 460,468 631,894 -0.1% 0.0% -27.1%
Retail 392,984 391,836 389,323 529,472 0.3% 0.9% -25.8%
Supermarkets 95,324 97,230 94,196 96,318 -2.0% 1.2% -1.0%
Telecommunications 27,329 27,412 24,750 39,418 -0.3% 10.4% -30.7%
Transportation & Logistics 208,423 225,233 223,623 311,453 -7.5% -6.8% -33.1%
Travel & Tourism 37,815 38,574 37,567 91,615 -2.0% 0.7% -58.7%

Source: Glassdoor Job Market Report, Sep 1, 2020

Table B: Change in Job Openings by Industry Group

Job Openings Percent Change
Aug 24, 2020 Aug 17, 2020 Jul 27, 2020 Aug 26, 2019
Category Current Week Last Week Last Month Last Year Week-over-Week Month-over-Month Year-over-Year
Total 4,970,465 5,026,420 4,892,848 6,103,234 -1.1% 1.6% -18.6%
Business Services 184,614 187,637 175,351 245,549 -1.6% 5.3% -24.8%
Construction & Real Estate Services 173,641 179,142 175,516 219,243 -3.1% -1.1% -20.8%
Consumer Services 280,796 280,896 270,245 411,166 0.0% 3.9% -31.7%
Finance & Insurance 154,238 159,942 155,009 210,319 -3.6% -0.5% -26.7%
Food Services 460,614 461,251 460,468 631,894 -0.1% 0.0% -27.1%
Health Care 855,221 875,296 832,191 913,127 -2.3% 2.8% -6.3%
Production 278,220 280,236 267,631 397,465 -0.7% 4.0% -30.0%
Public Services 336,378 346,234 340,924 440,178 -2.8% -1.3% -23.6%
Retail 498,217 497,851 491,890 640,559 0.1% 1.3% -22.2%
Tech 383,228 341,120 337,963 374,222 12.3% 13.4% 2.4%
Trade & Transportation 230,948 249,123 246,433 342,155 -7.3% -6.3% -32.5%

Source: Glassdoor Job Market Report, Sep 1, 2020

Table C: Change in Job Openings by State

Job Openings Percent Change
Aug 24, 2020 Aug 17, 2020 Jul 27, 2020 Aug 26, 2019
Category Current Week Last Week Last Month Last Year Week-over-Week Month-over-Month Year-over-Year
Total 4,970,465 5,026,420 4,892,848 6,103,234 -1.1% 1.6% -18.6%
Remote 17,297 16,852 14,597 10,770 2.6% 18.5% 60.6%
AK 10,438 11,196 10,929 12,064 -6.8% -4.5% -13.5%
AL 69,500 70,228 68,289 78,611 -1.0% 1.8% -11.6%
AR 39,599 39,955 39,259 42,617 -0.9% 0.9% -7.1%
AZ 103,991 107,526 108,488 121,509 -3.3% -4.1% -14.4%
CA 520,086 516,028 515,500 681,593 0.8% 0.9% -23.7%
CO 97,451 100,278 96,680 132,971 -2.8% 0.8% -26.7%
CT 53,102 53,790 52,773 71,414 -1.3% 0.6% -25.6%
DC 31,684 33,285 33,158 47,333 -4.8% -4.4% -33.1%
DE 17,265 18,298 17,964 20,780 -5.6% -3.9% -16.9%
FL 270,100 277,145 265,875 321,310 -2.5% 1.6% -15.9%
GA 161,809 166,034 159,020 202,048 -2.5% 1.8% -19.9%
HI 13,065 13,416 12,885 20,052 -2.6% 1.4% -34.8%
IA 52,603 52,909 51,823 58,486 -0.6% 1.5% -10.1%
ID 21,583 21,796 20,516 23,066 -1.0% 5.2% -6.4%
IL 212,499 210,412 197,088 260,345 1.0% 7.8% -18.4%
IN 109,958 111,568 106,866 124,320 -1.4% 2.9% -11.6%
KS 47,606 47,204 46,108 54,183 0.9% 3.2% -12.1%
KY 69,845 71,222 69,002 75,641 -1.9% 1.2% -7.7%
LA 56,733 57,742 56,090 66,538 -1.7% 1.1% -14.7%
MA 152,803 154,019 142,075 191,972 -0.8% 7.6% -20.4%
MD 113,174 118,581 118,466 139,598 -4.6% -4.5% -18.9%
ME 25,953 26,343 24,173 28,259 -1.5% 7.4% -8.2%
MI 151,242 147,910 145,132 163,115 2.3% 4.2% -7.3%
MN 89,453 90,897 86,929 113,412 -1.6% 2.9% -21.1%
MO 93,401 94,759 91,864 115,559 -1.4% 1.7% -19.2%
MS 35,700 36,232 35,040 37,834 -1.5% 1.9% -5.6%
MT 14,847 15,034 14,243 15,617 -1.2% 4.2% -4.9%
NC 166,395 168,112 162,931 209,039 -1.0% 2.1% -20.4%
ND 13,904 14,083 13,969 15,945 -1.3% -0.5% -12.8%
NE 33,148 34,330 33,433 33,226 -3.4% -0.9% -0.2%
NH 29,189 29,154 27,313 32,865 0.1% 6.9% -11.2%
NJ 142,681 133,575 141,940 155,828 6.8% 0.5% -8.4%
NM 36,112 37,012 35,285 40,587 -2.4% 2.3% -11.0%
NV 39,774 40,389 39,056 49,862 -1.5% 1.8% -20.2%
NY 225,928 227,768 223,026 315,641 -0.8% 1.3% -28.4%
OH 176,541 179,844 176,901 221,388 -1.8% -0.2% -20.3%
OK 50,886 51,755 49,537 61,477 -1.7% 2.7% -17.2%
OR 58,730 58,976 56,303 71,457 -0.4% 4.3% -17.8%
PA 219,024 225,266 212,547 248,284 -2.8% 3.0% -11.8%
RI 16,630 16,839 15,622 20,166 -1.2% 6.5% -17.5%
SC 82,189 83,183 80,868 93,453 -1.2% 1.6% -12.1%
SD 15,477 15,730 15,450 16,635 -1.6% 0.2% -7.0%
TN 109,212 110,411 106,620 129,390 -1.1% 2.4% -15.6%
TX 372,279 378,970 373,303 477,947 -1.8% -0.3% -22.1%
UT 46,003 45,991 43,731 54,952 0.0% 5.2% -16.3%
VA 168,953 170,572 167,377 204,871 -0.9% 0.9% -17.5%
VT 11,486 11,937 11,713 13,550 -3.8% -1.9% -15.2%
WA 124,698 128,654 129,676 154,502 -3.1% -3.8% -19.3%
WI 92,175 91,781 88,677 110,211 0.4% 3.9% -16.4%
WV 29,293 30,593 30,420 35,629 -4.2% -3.7% -17.8%
WY 9,671 10,045 9,713 12,171 -3.7% -0.4% -20.5%

Source: Glassdoor Job Market Report, Sep 1, 2020

Table D: Change in Job Openings for Select Metropolitan Areas

Job Openings Percent Change
Aug 24, 2020 Aug 17, 2020 Jul 27, 2020 Aug 26, 2019
Category Current Week Last Week Last Month Last Year Week-over-Week Month-over-Month Year-over-Year
Total 4,970,465 5,026,420 4,892,848 6,103,234 -1.1% 1.6% -18.6%
Atlanta, GA 95,926 97,717 94,019 127,174 -1.8% 2.0% -24.6%
Boston, MA 120,519 121,075 112,022 156,084 -0.5% 7.6% -22.8%
Chicago, IL 168,575 166,600 154,127 205,492 1.2% 9.4% -18.0%
Houston, TX 72,771 74,082 75,247 100,484 -1.8% -3.3% -27.6%
Los Angeles, CA 158,639 163,080 161,262 223,282 -2.7% -1.6% -29.0%
New York City, NY 245,681 234,395 242,202 318,332 4.8% 1.4% -22.8%
Philadelphia, PA 101,953 105,351 96,950 116,774 -3.2% 5.2% -12.7%
San Francisco, CA 111,273 103,248 108,375 150,029 7.8% 2.7% -25.8%
Seattle, WA 88,629 91,541 94,011 113,547 -3.2% -5.7% -21.9%
Washington, DC 144,353 147,504 147,294 197,058 -2.1% -2.0% -26.7%

Source: Glassdoor Job Market Report, Sep 1, 2020