U.S. Economy Loses Jobs but Unemployment Steadies

For the first time in eight months, the United States economy saw a decline in jobs during December, amid a new wave of the Coronavirus pandemic.

Data by the U.S. Department of Labor showed on Friday that Nonfarm Payrolls (NFP) declined by 140,000 in December, according to the U.S. Bureau of Labor Statistics, for the first time since April.

The reading follows November’s increase of 336,000 jobs.

The leisure and hospitality sectors accounted for the biggest share of job losses, with the closure of bars and restaurants representing about 75% of the total decline in jobs.

However, the unemployment rate remained unchanged at 6.7% last month.

If people who are reported as absent from work other than jobless are counted, the unemployment rate would rise to 7.3%, according to Reuters.

On the other hand, other industries such as retail, manufacturing, and construction are showing a positive performance, which reduces the risk of the American economy falling back into recession.

It is worth noting that the American economy has already recovered 12.4 million of the 22.2 million jobs lost due to the Coronavirus crisis.

In addition, the rollout of vaccines and the expected increase in stimulus spending is expected to provide more support to businesses in the coming period.