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U.S. job gains grind to halt; first loss of jobs nationwide since April

usscmc by usscmc
January 8, 2021
U.S. job gains grind to halt; first loss of jobs nationwide since April
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The U.S. economy lost 140,000 jobs in December and the unemployment rate was unchanged at 6.7 percent, the U.S. Bureau of Labor Statistics reported Friday.

It was the nation’s first monthly job loss since April.

In December, 15.8 million people reported that they had been unable to work because their employer closed or lost business due to the pandemic. That means they did not work at all or worked fewer hours at some point in the last 4 weeks due to the pandemic.

This measure is 1.0 million higher than in November.

These figures are based on two surveys. One, of households, gives the unemployment figure. Another, of employers, gives the jobs figures.

Among the unemployed, the number of people on temporary layoff increased by 277,000 in December to 3 million. This measure is down considerably from the high of 18million

in April but is 2.3 million higher than in February. The number of permanent job losers declined by 348,000 to 3.4 million in December but is up by 2.1 million since February, the federal government said.

The number of unemployed reentrants increased by 282,000 to 2.3 million over the month, 452,000 higher than in February.

The labor force participation rate and the employment-population ratio were both unchanged over the month, at 61.5 percent and 57.4 percent, respectively. These measures are up from their recent April lows but are lower than in February by 1.8 percentage points and 3.7 percentage points, respectively.

Among those not in the labor force who currently want a job, the number of persons who have stopped looking for work,, at 2.2 million, changed little in December but is up by 749,000 since February before the COVIdDpandemic started

Local and state unemployment figures for December will not be available for a few weeks.

The Massachusetts unemployment rate improved by seven tenths of a percentage point to 6.7% in November,

Massachusetts added 12,200 jobs in November, according to the state Department of Unemployment Assistance.

National unemployment numbers by sector of the economy:

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.

private education decreased by 63,000 in December. Employment in the industry is down by 450,000 since February.

Government employment declined by 45,000 in December. 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. Since February, government employment overall is down by 1.3 million.

Other services lost 22,000 jobs in December, with over half of the loss in personal and laundry services (-12,000). Employment in the other services industry is down by 453,000 since February.

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). Employment in professional and business services is down by 858,000 since February.

Retail trade added 121,000 jobs in December, 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). Employment in retail trade is 411,000 lower than in February.

Construction added 51,000 jobs in December, 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).

Transportation and warehousing rose by 47,000 in December, 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. Despite gains over the past 8 months, employment in manufacturing is 543,000 below its February level.

Wholesale trade employment rose by 25,000 in December but is down by 251,000 since February. In December, job gains occurred in durable goods (+11,000) and nondurable goods (+11,000).

In December, employment changed little in other major industries, including mining, information, and financial activities, the Commerce Department said

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