Business

U.S. sheds 1.4 lakh jobs as COVID-19 cases surge


The U.S. economy shed jobs for the first time in eight months in December as the country buckled under an onslaught of COVID-19 infections, suggesting a significant loss of momentum that could temporarily stall recovery from the pandemic.

Non-farm payrolls decreased by 1,40,000 jobs last month, the Labor Department said on Friday. Data for November was revised up to show 3,36,000 jobs added instead of 2,45,000 as previously reported.

Backstop buffer

The economy has recovered just over half of the 22.2 million jobs lost in March and April.

The unemployment rate was at 6.7% in December.

Despite the labour market weakness, the 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.

There is also optimism that the roll out of coronavirus vaccines will be better coordinated under the Biden administration.

You have reached your limit for free articles this month.

Subscription Benefits Include

Today’s Paper

Find mobile-friendly version of articles from the day’s newspaper in one easy-to-read list.

Unlimited Access

Enjoy reading as many articles as you wish without any limitations.

Personalised recommendations

A select list of articles that match your interests and tastes.

Faster pages

Move smoothly between articles as our pages load instantly.

Dashboard

A one-stop-shop for seeing the latest updates, and managing your preferences.

Briefing

We brief you on the latest and most important developments, three times a day.

Support Quality Journalism.

*Our Digital Subscription plans do not currently include the e-paper, crossword and print.



Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button