Showing posts with label retail trade. Show all posts
Showing posts with label retail trade. Show all posts

Tuesday, December 8, 2020

Georgia leisure and hospitality; arts, entertainment and recreation; and personal services employment and wages affected by pandemic and response in the 2nd quarter of 2020

 By now there is no secret that temporary shutdowns and permanent closures related to the Coronavirus and efforts to combat it fell heavily on Georgia’s leisure and hospitality sector. Over the first six months of 2020, the sector saw a 20 percent drop in employment and a 36-percentage drop in employee total wages. This compares to an 8.5 percent decline in the state’s total workforce and a 12 percent drop in total wages.

The good news is that since the end of June, the leisure and hospitality sector in Georgia has rebounded partially, but it is still important to understand how different industries within the sector fared in the first half of 2020.

Not all businesses within retail trade, leisure and hospitality, or personal services had the same employment effects. Some businesses have actually boosted their employment and payrolls as business increased even as other businesses saw cutbacks and closures.

In terms of providing assistance to businesses during times of pandemic and afterwards, it is important to distinguish both between businesses that suffered and prospered but also to distinguish to what extent employees and payrolls were affected in different parts of each industrial sector.

Retailers - Employment

Retailers in Georgia that normally see employment losses in the first months after Christmas saw those employment and payroll losses continue into the second quarter of the year. Retail employment dropped 5 percent (-25,577 workers) between December and March, and then from April to June, retail trade employment lost another 3.3 percent (-16,098).

As a percentage of the labor force, the worse hit employment groups within the retail trade were clothing and clothing accessories stores, down 27.5 percent (-9,936 workers) in the second quarter of 2020; sports, hobby, music instrument, and book stores, down 16 percent (-2,269); and furniture and home furnishing stores that declined 14.8 percent (-2,691).

In contrast, some retailers saw significant growth in their workforces, including building material and garden supply stores, up 7.6 percent (3,187) and food and beverage stores, which includes grocery retailers, whose workforce rose by 7 percent (6,466).

General merchandise stores that carry a mix of groceries and other merchandise certainly picked part of the trade that might have otherwise gone to more specialized retailers, such as clothing stores, but as the numbers indicate, the general merchandise stores did not add sufficient employment to offset the employment losses by specialty retailers.

The same was true for the category of food and beverages stores, which includes grocery stores. Grocery stores added more than 6,400 people in the second quarter of the year, but this did not make up for the job losses among specialty retailers.

Retail industry groups by change in employment in Georgia from March to June 2020

·         Clothing and clothing accessories stores -27.47% (-9,936 employees)

·         Sports, hobby, music instrument, and book stores -16.04% (-2,269)

·         Furniture and home furnishings stores -14.78% (-2,691)

·         Miscellaneous store retailers -12.9% (-2,790)

·         Motor vehicle and parts dealers -7.89% (-5,391)

·         Electronics and appliance stores -3.88% (-643)

·         Gasoline stations 0.39% (120)

·         General merchandise stores 0.65% (677)

·         Food and beverage stores 7.01% (6,466)

·         Building material and garden supply stores 7.59% (3,187)

Retailers – Wages

As with employment, the total wages paid by retailers in Georgia declined significantly between March and June 2020. With some retail groups paying higher average wages than others, for some retail groups the impact of employment declines showed up differently than the employment impact.

Clothing and clothing accessories stores reported the largest decline in their total wage bill, dropping by more than 37.6 percent in the second quarter, followed by electronics and appliance stores, which posted declines of 22.8 percent.

In contrast, food and beverage stores saw their total wage bill increase by 10 percent, and gasoline stations posted payroll increases of 10.7 percent.

Arts, entertainment, and recreation - Employment

With restrictions on large gatherings of people, along with individuals’ own reluctance to participate in crowds due to concerns about Covid-19 contagion, entertainment and recreational venues have suffered severe employment losses.

Companies in the performing arts and spectator sports business saw the greatest decline in employment, down 37.4 percent (-4,196 employees) in the second quarter followed by accommodation businesses, which includes hotels, that marked a 32.5 percent (-15,554) drop.

Food services and drinking places, which includes both full-service and limited-service restaurants as well as bars, saw the largest decline in the number of employees with the percentage of their workforce dropping by 15.6 percent (-59,789).

Arts, entertainment, and recreation industry groups by change in employment in Georgia from March to June 2020

·         Performing arts and spectator sports -37.42% (-4,196)

·         Accommodation -32.48% (-15,554)

·         Museums, historical sites, zoos, and parks -17.26% (-608)

·         Food services and drinking places -15.6% (-59,789)

·         Amusements, gambling, and recreation -11.9% (-4,319)

Arts, entertainment, and recreation – Wages

Although food services and drinking places saw the largest decline in the number of employees, accommodation saw the largest decrease in its total wage bill, down 48.7%. Food services and drinking places recorded a 31% decline in payroll, while performing arts and spectator sports-related businesses saw their payroll drop by 26%.

Other Services – Employment and Wages

One area that is often overlooked are other services such as personal services and laundry services, membership organizations and associations, and private households.

Personal and laundry services in this category range from beauty salons and barber shops to nail salons, funeral homes, laundry services, and other services such as parking lots. These businesses saw employment drop in Georgia by 18.6% (-7,334) in the second quarter with payrolls declining by 27.6%.

Membership organizations and associations saw employment decreases of 12.5% (-3,306) and payroll drop by 13.7%. Private households, which are defined as including workers employed by individual families, saw a 3.5% decline in employment with payrolls dropping by 7.5%.

About the numbers

Information on employment and total wages by detailed industry is provided by the Bureau of Labor Statistics Quarterly Census of Employment and Wages and provides the most detailed information on American industries. Because of the level of detail and the use of administrative records, the data are highly accurate but are delayed in publication. Current information is available only through the end of June 2020. More information on the QCEW is available at Quarterly Census of Employment and Wages : U.S. Bureau of Labor Statistics (