Education 'poised for strong job gains' heading into school year, according to JP Morgan

·2 min read

The education sector should create a big boost in job gains in the coming month, according to recent notes by J.P. Morgan (JPM) and Bank of America (BAC) economists, and that trend could continue well into the fall.

As school districts resume in-person learning, the sector is "poised for strong job gains," J.P. Morgan researchers wrote in an August 26 note.

Over the three months ending in July, "education-related employment (in both the public and private sectors) increased by 664,000," the J.P. Morgan note said, "accounting for more than a fourth of the 2.5 [million] jobs added in these months after seasonal adjustment.”

"The education sector has provided a significant boost to the monthly payroll readings in recent BLS reports," says J.P.Morgan.
"The education sector has provided a significant boost to the monthly payroll readings in recent BLS reports," says J.P.Morgan.

Gains to continue through September

The rebound is a clear reversal from last year's severe job losses in the education sector.

And with schools opening back up, the J.P. Morgan team expects around 225,000 jobs to be added in education in August. 

This trend is also likely to continue into September, the note forecasted, as school districts open at different times. For instance, New York City schools don't reopen until September 13.

This estimate brings education employment to about 95 to 96% of its pre-pandemic trend.

In overall hiring, J.P. Morgan is expecting an increase of 625,000 in jobs for August in total non-farm employment. They are also expecting an even stronger September, which is "the month that usually has the biggest jump in hiring before seasonal adjustment."

A teacher instructs students at Freedom Preparatory Academy on September 10, 2020 in Provo, Utah. - In person schooling with masks has started up in many Utah schools since shutting down in March of this year due to the covid-19 virus. (Photo by GEORGE FREY / AFP) (Photo by GEORGE FREY/AFP via Getty Images)
A teacher instructs students at Freedom Preparatory Academy on September 10, 2020 in Provo, Utah. (GEORGE FREY/AFP via Getty Images)

'Saved by the bell… again?'

Bank of America (BofA) analysts stated that they, too, expect a big boost in education jobs, according to an August 27 note.

They expect government payrolls to increase by 200,000 in August, with a large proportion coming from the education sector.

"The gain should come from the education sector where there was an outsized increase in hires over the summer due to greater summer school enrollment compared with other years," the BofA analysts explained. 

They added that the "strength in public education payrolls should continue into August as many school districts likely retained summer school teachers and staff."

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Reggie Wade is a writer for Yahoo Finance. Follow him on Twitter at @ReggieWade.

Aarthi is a reporter for Yahoo Finance. She can be reached at aarthi@yahoofinance.com. Follow her on Twitter @aarthiswami.

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