The 140K Jobs lost was the first monthly decline since the pandemic flared up, however, unemployment holds at 6.7%
The following written content from Paul Davidson
U.S. employers shed 140,000 jobs in December amid COVID-19 surges and new business constraints, closing out a dismal year with the first payroll losses since the pandemic upended the economy last spring.
Restaurants and bars hemorrhaged jobs last month, and the report kicks off a potentially brutal winter as the nation awaits wide distribution of a vaccine that should pave the way for brighter days.
The unemployment rate, which is calculated from a different survey, held steady at 6.7%, the Labor Department said Friday.
Economists had estimated that 50,000 jobs were added last month, according to a Bloomberg survey.
Leisure and hospitality, including bars and restaurants, drove last month’s job losses, shedding 498,000 positions.
State and local governments, which are coping with massive pandemic-related revenue declines, lost about 50,000 jobs. The losses more than offset surprisingly strong payroll advances in other sectors.
Prior to December, job gains had slowed for five straight months since peaking at 4.8 million in June. The nation has recovered slightly more than half the 22.2 million jobs wiped out in the health crisis as states have reopened restaurants, shops and other businesses shuttered by the outbreak, and brought back many furloughed workers.
But the rehiring has been offset by a resurgent virus across most of the country that’s sparking renewed restrictions on businesses, fewer visits by consumers who fear contagion and hundreds of thousands of layoffs.
Daily coronavirus cases have hit fresh records amid holiday travel and gatherings, and colder weather. As a result, many states have barred indoor dining, reduced capacity limits at stores and restaurants or forced outlets to shut down completely. California, for example, shuttered hair salons, movie theaters, bars and breweries in early December
.About 25% of small businesses that were open in January 2020 were closed last month, according to Homebase, which provides employee scheduling software. The number of employees working was down 3% compared with a month earlier, the firm said. Read more from USA Today
The following written content from Tyler Durden
A closer look at which industries were affected most in December:
Employment in leisure and hospitality declined by 498,000, with three- quarters of the decrease in food services and drinking places (-372,000). Employment also fell in the amusements, gambling, and recreation industry (-92,000) and in the accommodation industry (-24,000). Since February, employment in leisure and hospitality is down by 3.9 million, or 23.2 percent.
Employment in private education decreased by 63,000. Employment in the industry is down by 450,000 since February.
Government employment declined by 45,000. Employment in the component of local government that excludes education declined by 32,000, and state government education lost 20,000 jobs. Federal government employment increased by 6,000.
Other services lost 22,000 jobs, with over half of the loss in personal and laundry services (-12,000).
Employment in professional and business services increased by 161,000, with a large gain in temporary help services (+68,000). Job growth also occurred in computer systems design and related services (+20,000), other professional and technical services (+11,000), management of companies and enterprises (+11,000), and business support services (+7,000).
Retail trade added 121,000 jobs, with nearly half of the growth occurring in the component of general merchandise stores that includes warehouse clubs and supercenters (+59,000). Job gains also occurred in nonstore retailers (+14,000), automobile dealers (+13,000), health and personal care stores (+10,000), and food and beverage stores (+8,000).
Construction added 51,000 jobs, but employment in the industry is 226,000 below its February level. In December, employment rose in residential specialty trade contractors (+14,000) and residential building (+9,000), two industries that have gained back the jobs lost in March and April. In December, employment also increased in nonresidential specialty trade contractors (+18,000) and in heavy and civil engineering construction (+15,000).
Employment in transportation and warehousing rose by 47,000, largely in couriers and messengers (+37,000). While employment in transportation and warehousing overall is 89,000 lower than in February, employment in couriers and messengers has increased by 222,000 over the same period. In December, employment also grew in warehousing and storage (+8,000) and in truck transportation (+7,000), while transit and ground passenger transportation lost 9,000 jobs.
Health care added 39,000 jobs. Employment growth in hospitals (+32,000) and ambulatory health care services (+21,000) was partially offset by declines in nursing care facilities (-6,000) and community care facilities for the elderly (-5,000). Health care employment is 502,000 lower than in February.
Manufacturing employment increased by 38,000, with gains in motor vehicles and parts (+7,000), plastics and rubber products (+7,000), and nonmetallic mineral products (+6,000). By contrast, miscellaneous nondurable goods manufacturing lost 11,000 jobs over the month.
Wholesale trade employment rose by 25,000 but is down by 251,000 since February. In December, job gains occurred in durable goods (+11,000) and nondurable goods (+11,000). Read more from Zero Hedge
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