ARLINGTON, Va.—New data from the Bureau of Labor Statistics show non-farm payrolls fell 140,000 in December, with the unemployment rate remaining flat at 6.7%.
Indicative of the so-called K-shaped recovery many economists have cited, NAFCU Chief Economist and Vice President of Research Curt Long noted the job losses were "highly concentrated in restaurants, hotels, and casinos," and several other industries showed strong gains.
Of note, the November non-farm payrolls rate was revised up to a gain of 336,000.
“December’s employment report fittingly capped a bizarre and painful year,” said Long. “Areas like construction, manufacturing, and even retail showed strong gains during the month. The headline number will keep Congress on track to provide more fiscal relief, but the underlying figures still support the view that the economy can recover fairly quickly once vaccines are more widely distributed.
“The number of workers reporting that they are on permanent job loss is well below 2009 and 2010 levels and fell by 348,000 in December, which hopefully points to less long-term scarring than feared,” continued Long. “When warmer weather arrives and vaccination programs have protected many of the most vulnerable of the population, a sustained recovery can finally begin.”
Other Data Points
The new federal data also show average hourly earnings rose 23 cents in December, with year-over-year growth reaching 5.1%. The labor force participation rate was unchanged at 61.5%, significantly down from 63.4% in February. Results among the major industries showed big losses in hospitality partially offset by retail and construction.
Retail trade gained 121,000 jobs, followed by construction (+51,000) and transportation and warehousing (+47,000). Leisure and hospitality fell by 498,000, with three-quarters of the losses in food service and drinking places, Long said.