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U.S. Economy Shed 140,000 Jobs in December vs 71,000 Gain Expected

Economic IndicatorsJan 08, 2021 08:38AM ET
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© Reuters.

By Geoffrey Smith 

Investing.com --- The U.S. labor market suffered its first net loss of jobs in eight months in December, as the surge in Covid-19 cases hit service sectors of the economy hard in the runup to the Christmas holiday. 

The Bureau of Labor Statistics said nonfarm employment fell by 140,000 through the middle of the month, compared with expectations for an increase of 71,000. However, the waters were muddied by a big upward revision to hiring in November, where payrolls grew by 336,000, rather than the 245,000 initially reported last month. 

The unemployment rate, meanwhile, stayed at 6.7% of the workforce, defying expectations of an increase to 6.8%.

The carnage of lockdown measures was most evident in the hospitality sector, where 372,000 jobs were lost in bars and restaurants nationwide. Another 92,000 were lost in entertainment parks and casinos.  That was partly offset by a boom in delivery services as the pandemic forced Christmas shoppers online. Around 37,000 jobs were created for messengers and couriers, while another 59,000 were created in warehouses and other wholesale centers.

The markets reacted by seeing the data as 'bad news but old news'. After an initial dip, Dow Jones Futures were back trading at their pre-release level within 20 minutes.  The yield on the 10-Year Treasury bond, which had broken out of a long-standing range to the upside this week on expectations of a big increase in government borrowing, was also little changed, rising two basis points to 1.09%.

The monthly labor report is no longer the key driver that it once was for markets that are focusing overwhelmingly on the spending plans of the new administration and the perceived willingness of the Federal Reserve to keep interest rates at rock-bottom levels.

U.S. Economy Shed 140,000 Jobs in December vs 71,000 Gain Expected
 

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Comments (24)
perplexed76 .
perplexed76 . Jan 09, 2021 1:09AM ET
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that's irrelative data vs. set of rebound hope vaccine stimulus
Dusty Owen
Dusty Owen Jan 08, 2021 1:51PM ET
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Businesses are planning for the Biden Economy so they are getting lean. The risk to the econony is much higher now. Growth will be much slower than what we were used to under Trump but equities should be fine.
Leahc Corpuz
Leahc Corpuz Jan 08, 2021 12:38PM ET
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Mate even with all the Bad news and analysts news, the market has not gone down it keeps on going up. it does not makes sense why.We printed 62% more money since day 1 of 2020 to last day of 2020 (Printing money per year is typical but not in those kind of levels.Now they want to give more money to people. A lot of newby investors keep pumping their money in the market. They also the ones highly likely to bag hold.Then they are also big institutions who need some reality check when there Earnings and Q1 Reports must be written (Debt Gallore)What is even real in the market anymore🤣🤣🤣
Hunt Richardson
Hunt Richardson Jan 08, 2021 10:44AM ET
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again the "experts" in the bureau of labor are wildly off the mark. wondering how much they get paid to be wrong? imagine making so many incorrect predictions for a private company. you'd have been fired long ago. unemployment at 6.7%? you can't be serious
Tre Hsi
Tre Hsi Jan 08, 2021 10:44AM ET
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well, remember back in 2016 Trump said the real unemployment rate was like 42% then?  so using that same methodology taught in Trump University,  the real unemployment rate must be like 62% these days.....
John Klan
John Klan Jan 08, 2021 10:09AM ET
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Debt clock at nearly 28 trillion. When Biden adds 2 trillion more when he pays off the $2000 bride he offered Georgia voters for voting in the two Socialist bozos.
Show previous replies (1)
Tre Hsi
Tre Hsi Jan 08, 2021 10:09AM ET
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".....the $2000 bride he offered Georgia voters for voting in the two Socialist bozos."  -- by that of course you actually mean the $2000 bride first proposed by president orange, right?
Chris Jackson
Chris Jackson Jan 08, 2021 10:09AM ET
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So...John will accept yours. Right?
Mg Yb
Mg Yb Jan 08, 2021 10:09AM ET
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if it were the current administration, we would have added 14T. Hold tight and get ready to pay for all the global and social issues with the good ol’ democratic helicopter drop of pallets of cash. Once this administration is done, you would be wishhing for the Orange man to come back. Just remember folks, foreign aid cant be traced, that’s why we will be giving out records of it.
Dusty Owen
Dusty Owen Jan 08, 2021 10:09AM ET
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Hes gonna add over 10 trillion. Equities will be fine though. The dollar might not be but as long as we are the reserve currency others will just devalue theirs vs hours because its free money
Mg Yb
Mg Yb Jan 08, 2021 10:09AM ET
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Dusty Owen No doubt they will add 10T+
alkesh kumar
alkesh kumar Jan 08, 2021 10:01AM ET
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people are suffering day in day out due to pendamic , slow economy and job loss and here reporter feel this is old news hence Market simply overlooked it...actually something fishy in Stock market across the globe...it's getting sick day by day...
Matt Kay
Matt Kay Jan 08, 2021 9:49AM ET
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Nothing matters. Stonks only go up. Market is a scam. Buy or d|e
Casador Del Oso
Casador Del Oso Jan 08, 2021 9:40AM ET
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everything's up except gold. virus infections up. unemployment up. stocks ip.
Rick Baier
Rick Baier Jan 08, 2021 9:32AM ET
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Dominion software guy in Italy signed a affidavit that he is responsible for the software of flipping votes. And arrests are being made in italy as well? Rumble.com
andy matalobos
andy matalobos Jan 08, 2021 9:32AM ET
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Right! and his name is Benito Mussolini.........another Trumsky Trumsky poor educated zombie.
Tre Hsi
Tre Hsi Jan 08, 2021 9:32AM ET
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even OAN and Newsmax had to put out "clarifications" saying they found no frauds from the voting machines (under the threat of defamation suits of course), I see Rich Baier is like 3 weeks behind from the latest talking points......
Mike Chen
Mike Chen Jan 08, 2021 9:15AM ET
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The result means more stimulus?
Gamer Turtle
GamerTurtle Jan 08, 2021 9:14AM ET
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doesn't matter anymore, should no longer be on investing. lol. stock market goes for another ATH again. lol
Ryan Plesz
Ryan Plesz Jan 08, 2021 9:05AM ET
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employment fell but payrolls grew??? I can't trust anything anymore.
Asif Ullah Khattak
Asif Ullah Khattak Jan 08, 2021 9:02AM ET
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non payroll should to show up trend for usd because expected value is low than actual but this aap is shown it low.
Asif Ullah Khattak
Asif Ullah Khattak Jan 08, 2021 9:02AM ET
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non payroll should to show up trend for usd because expected value is low than actual but this aap is shown it low.
Kamal Khan
Kamal Khan Jan 08, 2021 8:55AM ET
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Bonase
Casino Crypt
CasinoCrypt Jan 08, 2021 8:55AM ET
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I am a lone wolf analysis - You are sugar coating the 'real' data. The bar was  set really  low in November and this interesting because it was the election month. I have been following key data numbers all year and the " better than expected " data comes in on key dates for Donald Trump. Including positive PMI reports , its noticeable that key data on significant dates for trump during the year were questionable. The markets are getting duped and they don't even know it.
costel to
costel to Jan 08, 2021 8:53AM ET
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Why make any effort and work?1BTC = average anual salary.So, just buy 1BTC and relax, it will increase 400% per year and you will be a millionaire in no time.
Michael Mostkow
Michael Mostkow Jan 08, 2021 8:53AM ET
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41k and change spare? Sure...go ahead and watch it burn when the BTC bubble bursts....
Robert smith
Robert smith Jan 08, 2021 8:53AM ET
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Yes and a single Tulip once was worth more than a nice house, until it was just a flower again and all the people investing in them were living on the streets. The only money I never wanted was the "sure" money and the "easy, get rich quick money". Its not that it doesnt exist its what it does to your brain- Take yourself for example: If your not just pumping BTC so you can dump it or make a commission selling it then you must have made millions on paper. But you'll never realise a dime of it. Why? because greed has you buying more of it when you should be taking profits and putting millions in something SAFE. Nope, it WILL crash eventually and for you it doesnt make a bit of difference when or how high it goes. If you're a buyer at $40k you'll be a buyer at $1M and you'll still loose everything when it does.
Djodmy Champagne
Djodmy Champagne Jan 08, 2021 8:52AM ET
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good
Giang Cao Thi Hà
Giang Cao Thi Hà Jan 08, 2021 8:50AM ET
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the unemployment rate
Lex Wild
Lex Wild Jan 08, 2021 8:45AM ET
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Long more Stimulus
Yankee Steve
Yankee Steve Jan 08, 2021 8:45AM ET
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The Great Reset is to destroy the old order of labor and bring in the 4IR. The destroying of truck drivers and taxi drivers jobs will be next when they cone up with driverless vehicles
Rob Banks
Rob Banks Jan 08, 2021 8:45AM ET
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I'm wondering if the reset will destroy FX. seems like it would if we use a one world currency. Don't know if that will ever happen, plus we could still have Crypto and metals to play with.
Ross Dre
Ross Dre Jan 08, 2021 8:43AM ET
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And the market will yet again get another boost on this dismal news.
joy city
joy city Jan 08, 2021 8:43AM ET
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folks quit jobs to play stocks at home
Yankee Steve
Yankee Steve Jan 08, 2021 8:43AM ET
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The number is useless. We are more like at least in unemployment of 20%
Styr Lotus
Styr Lotus Jan 08, 2021 8:43AM ET
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you're right. Millions of people are not part of the work force anymore, giving to the umployment charts an false shiny look.
Marc Gee
MarcG Jan 08, 2021 8:43AM ET
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actually need to look at wage growth /drop too. those guys now doing doordash are not making half of what they used to. even WITH the top-up insurance. in Oregon. I know those guys. the number employed is not the entire story.
Randall Richmond
Randall Richmond Jan 08, 2021 8:43AM ET
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We cant go back to work that will destroy the plan
 
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