Job creation came to a halt in December, as restrictions on rising Covid-19 cases pounded virus-sensitive industries, particularly bars and restaurants, which lost nearly half a million jobs during the month.
The Department of Labor reported Friday that non-farm payrolls fell by 140,000. This was lower than the expectations of 50,000 economists surveyed by Dow Jones.
The unemployment rate was 6.7%, compared to the 6.8% estimate. An alternative measure of unemployment that includes discouraged and part-time workers for economic reasons fell from 11% to 11.7%.
Markets, however, set aside the report, probably in anticipation that it would strengthen the case for more stimulus from Congress and reflect a likely temporary reduction in jobs that would be reversed as the distribution of jobs accelerated. the Covid vaccine.
Since the recovery began in May, the economy had recovered 12.3 million jobs lost. The greatest success came in the hospitality industry, where hotels, restaurants and bars suffered under the yoke of restrictions that limited travel, food and drink.
The industry recorded a drop of 498,000 positions during the month, most reaching restaurants and bars, which recorded a drop of 372,000. Overall, the hospitality industry has fallen 3.9 million jobs since January, a drop of 23.2%, according to a report by the Bureau of Labor Statistics.
Many of the restrictions on the boundaries of the establishments were lifted in the summer, but were re-imposed in recent months as coronavirus cases increased and states and communities again eliminated or restricted food and drink in interiors.
When an extraordinary year closed that marked approximately 22 million workers in March and April, the labor market had experienced a strong recovery that, despite everything, left about half of the displaced on the sidelines.
Private education also fell by 63,000, while government jobs contracted again with the loss of 45,000 jobs. The rest of services fell 22,000.
Professional and commercial services experienced 161,000 growth, while retail added 121,000 during the holiday shopping season and construction contributed 51,000.
Transportation and storage also added 47,000 and healthcare grew by 39,000.
This success in the labor market occurs even though economic growth appears solid in the fourth quarter. The Atlanta Fed’s GDPNow tracker sees the US economy accelerate 8.5% over the past three months of the year, although economists expect the first quarter of 2021 to show growth scarce or nonexistent.
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