Between February 2020 and June 2022, the U.S. labor market experienced the deepest downturn and fastest rebound in a century. The global COVID-19 pandemic disrupted the economy, causing an unprecedented shutdown and record job loss across all industries. But the labor market was able to recover remarkably quickly, and this rebound continues to shape today’s employment trends and the broader economy.

Employment Recovery

At the start of 2020, the economy was strong, with the unemployment rate at a 50-year low of 3.5%, steady job growth, and wages modestly outpacing inflation.

When the pandemic struck, economic activity plummeted. In April 2020 alone, the U.S. lost about 20.5 million jobs  — the largest monthly loss ever recorded — and the unemployment rate soared to 14.8%, the highest level since the Great Depression. By the end of the spring, the economy shed nearly 22.9 million jobs and nonfarm payroll employment fell to its lowest level since February 2011.

This historic collapse was followed by a historic recovery. By June 2022, total nonfarm employment had returned to 152.4 million, surpassing its pre-pandemic level in only 26 months — an unprecedented pace compared to past recessions.

Uneven Industrial Recovery

Although the overall economy rallied, recovery across industries was varied. The leisure and hospitality sector was hit the hardest, losing about 8.2 million jobs — nearly half its workforce — in just two months. However, by August 2025, it had fully recovered and exceeded pre-pandemic employment.

Other major sectors that experienced significant job loss included:

• Health care and social assistance – nearly 2.3 million jobs lost
• Retail trade – 2.27 million jobs lost
• Professional and business services – 2.26 million jobs lost
• Government – about 1.46 million jobs lost
• Construction – 1.09 million jobs lost 

Although all the aforementioned industries have expanded beyond their pre-pandemic levels, not all sectors have caught up:  

• Manufacturing, particularly durable goods, remains slightly below full recovery at 99% of its February 2020 employment level after losing nearly a million jobs.  
• The mining and logging industry continues to lag at about 89% of its pre-pandemic size.  

In contrast, sectors like transportation and warehousing have grown dramatically, reaching 117% of 2020 employment, reflecting lasting changes in consumer behavior and logistics demand. 

Jing Fu, NAHB senior director of forecasting and analysis, explains the impact these and other factors have had on housing demand and a potential market rebound in this Eye on Housing post.