Nonfarm payroll employment in the U.S. fell last month for the first time since April 2020, widely missing forecasts as the coronavirus pandemic raged on, data from the Bureau of Labor Statistics showed.
The U.S. economy shed 140,000 jobs in December 2020, compared with revised job gains of 336,000 in November. The consensus estimate of economists polled by Econoday was for an addition of 50,000 jobs.
"The decline in payroll employment reflects the recent increase in coronavirus (COVID-19) cases and efforts to contain the pandemic," the BLS said in its report. "In December, job losses in leisure and hospitality and in private education were partially offset by gains in professional and business services, retail trade, and construction," it added.
October's employment growth was revised up by 44,000 to 654,000. With the latest revisions, combined employment in October and November was 135,000 higher than previously reported, the BLS said.
The jobless rate was unchanged at 6.7%, compared with the Econoday consensus estimate of 6.8%.
Employment in leisure and hospitality dropped by 498,000 jobs, led by a decline of 372,000 in food services and drinking places. The amusements, gambling and recreation industry shed 92,000 jobs while the accommodations sector lost 24,000.
Jobs in the private-education sector declined by 63,000 in the month, while government employment decreased by 45,000.
The professional and business services sector added 161,000 jobs, while the retail trade sector gained 121,000. The transportation and warehousing sector added 47,000 jobs.
The manufacturing sector hired 38,000 employees, while employers in the wholesale trade sector added 25,000 jobs. Employment in the construction industry increased by 51,000, while healthcare added 39,000 jobs.
The number of individuals on temporary layoff increased by 277,000, to 3.0 million, significantly below the high of 18.0 million recorded in April 2020, but is 2.3 million higher than in February 2020.
The number of people who lost jobs permanently declined by 348,000 in the month, to 3.4 million.
The labor force participation rate was unchanged at 61.5% from the previous month. Average hourly earnings for employees on private nonfarm payrolls increased by 23 cents to $29.81.