The Ministry of Labor recorded the reduction in employment for the first time since April last year.
In December, the United States recorded its first job cut since April last year. According to a report released by the Labor Department on Friday, the country recorded a loss of 140,000 jobs last month, according to a report released by the Labor Department. The economy in general and the labor market, in particular, have been severely affected by a new surge in coronavirus infections.
Steady growth in hiring has been observed in the United States since April 2020. Still, the second wave of the pandemic forced state authorities to re-impose restrictions on businesses in an attempt to control the spread of the coronavirus. As a result, the owners of the companies were forced to make job cuts.
“The decline in employment reflects the recent increase in the number of coronavirus (COVID-19) infections and the efforts of [local authorities] to contain the pandemic,” the Ministry of Labor said in a report.
According to the federal government, the leisure and hospitality sector was particularly hard hit, with 498,000 jobs lost in December.
December’s results were much worse than expected, but some analysts had previously warned of an approaching economic activity downturn.
“This wave of COVID-19 has halted the recovery [of the US economy],” says Robert Frick, an economist at the US Navy’s Federal Credit Union.
He said that until the authorities can bring the pandemic under control and speed up the vaccination process, “people will not be in a hurry to return to bars and restaurants soon.”
Although the unemployment rate did not increase overall in December, remaining at the level of November’s 6.7%, 10.7 million Americans are now out of work. This is twice as much as before the outbreak of the pandemic.
According to the Labor Department, the unemployment rate is particularly high among African-Americans and Hispanics in the United States – 9.9% and 9.3%, respectively.