Non-farm payrolls decreased by 140,000 jobs last month, the US Labor Department said today
Non-farm payrolls decreased by 140,000 jobs last month, the Labor Department said today.
Data for November was revised up to show 336,000 jobs added instead of 245,000 as previously reported. That was the first decline in payrolls since April.
The US economy has recovered just over half of the 22.2 million jobs lost in March and April.
Today’s figures show that the US unemployment rate was at 6.7% in December.
Despite the labour market weakness, the US economy is unlikely to fall back into recession, with a backstop of nearly $900 billion in additional pandemic relief approved by the government last week.
More fiscal stimulus is expected now that the Democrats have gained control of Senate, boosting the prospects for President-elect Joe Biden’s legislative agenda.
Congress yesterday formally certified Biden’s election victory hours after hundreds of President Donald Trump’s supporters stormed the US Capitol.
There is also optimism that the roll out of coronavirus vaccines will be better coordinated under the Biden administration.
Covid-19 cases in the US have jumped to more than 21 million, with the death toll exceeding 356,000 since the virus first emerged in China in late 2019, according to the US Centers for Disease Control and Prevention.
Still, the employment report joined a raft of other weak data on consumer confidence and spending in underscoring the virus’ brutal impact on the economy, which plunged into recession in February.
“The economy will be on the soft side for the next several months, but with fiscal support and vaccines, the economy should kick into higher gear by summer,” said Mark Zandi, chief economist at Moody’s Analytics in Pennsylvania.
The US economy is believed to have expanded at around a 5% annualised rate in the fourth quarter, with the bulk of the rise in gross domestic product seen coming from inventory investment.
It grew at a historic 33.4% pace in the third quarter after shrinking at a 31.4% rate in the April-June period, the deepest since the government started keeping records in 1947.