Economists are optimistic employment will rebound in the coming months amid expectations for increased inoculations and additional fiscal stimulus.
The US economy saw loss of jobs for the first time in eight months, in December, as the country was severely affected by the COVID-19 pandemic. Nearly $900 billion in additional pandemic relief approved by the government in late December will probably provide a backstop.
Payrolls decreased by 140,000 jobs last month, the first decline since April, after increasing by 336,000 in November. The economy ended 2020 with 9.4 million fewer jobs. The economy has recovered 12.4 million of the 22.2 million jobs lost during the pandemic.
COVID-19 cases in the United States have jumped to more than 22 million, with the death toll exceeding 378,000 mark.
Excluding the leisure and hospitality sector, payrolls rose at roughly the same pace as in November.
Retail employment rose by 121,000 jobs. Factories hired 38,000 workers and construction payrolls increased by 51,000 jobs. There were also gains in employment in professional and business services, transportation and warehousing, health care and wholesale trade industries.
Economists are optimistic employment will rebound in the months ahead and accelerate through 2021 amid expectations for increased inoculations and additional fiscal stimulus.
1. US employers slashed 140,000 jobs in December 2020
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US employers slashed 140,000 jobs in December 2020, the first monthly decline in employment since April 2020, Labour Department's Bureau of Labour Statistics (BLS) report said.
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2. Employment in leisure and hospitality down by 23.2%
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The Labour Department's Bureau of Labour Statistics BLS report noted that employment in leisure and hospitality declined by 498,000, with three-quarters of the decrease in food services and drinking places, by 372,000. Since February 2020, employment in leisure and hospitality has been down by 3.9 million, or 23.2%.
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3. Employment in private education in December
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Employment in private education, meanwhile, decreased by 63,000 in December, the report showed, noting that employment in the industry has fallen by 450,000 since February.
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4. Government employment also declined
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Government employment also declined by 45,000 in the month. Since February 2020, government employment overall has been cut by 1.3 million.
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5. 22 million Americans lost their jobs
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Amid widespread COVID-19 shutdowns in March and April last year, 22 million Americans lost their jobs. The latest data showed that the number of unemployed in December remained unchanged at 10.7 million, which is about 5 million higher than pre-pandemic level in February 2020.
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6. Unemployment rate remained unchanged in December
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The unemployment rate, which has been trending down over the past seven months, remained unchanged at 6.7% in December. The unemployment rate in December was down by 8 percentage points from its recent high in April 2020 but is 3.2 percentage points higher than its pre-pandemic level in February, the Bureau noted.
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7. Employment index fell by 3.3 percentage points
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The employment index, however, fell by 3.3 percentage points to 48.2%, marking the first contraction after three consecutive months of growth.
(Image Source: Reuters)
