Office-using employment weathers early stages of COVID-19 downturn

The COVID-19 pandemic and sharp economic downturn will lead to rapidly increasing unemployment over the next quarter and higher office vacancies in the near term, reported CBRE. But if progress continues in containing COVID-19 and corporate occupiers can generally continue to withstand the short-term upheaval, the direst scenarios for office vacancies may be averted.

Office jobs appeared to hold steady in the U.S. Bureau of Labor Statistics’ March employment report, which reflected some of the initial impact of COVID-19. Most of the 701,000 jobs lost in March were concentrated in restaurants and bars, retailers (e.g., clothing and furniture), daycare services, and dental and non-essential medical providers (see Figure 1).

Total office-using employment declined by only 51,000 jobs in March, almost all of which were in the temporary staffing industry — historically one of the first sectors to be