US adds 199,000 new jobs in December, less than expected

The US economy created just 199,000 jobs in December, far fewer than the 440,000 expected by analysts, reflecting a recovery in the US labor market subject to fluctuations in the Covid-19 pandemic. Friday (7).

Even so, the unemployment rate continued to fall, and more than expected, standing at 3.9% (-0.3 percentage point). With this, it begins to approach the pre-pandemic level (3.5%).

This month’s disappointing job creation adds to the same performance in November, also lower than economists’ forecasts (249,000 revised upwards).

The data was collected before the omicron variant spread across the country.

While the unemployment rate continues to decline for the bulk of the population, it rose 0.6 point among African Americans to 7.1%.

“Job growth averaged 537,000 (jobs) per month in 2021,” the Labor Department said in a statement.

As of April 2020, 18.8 million jobs have been created, but there are still 3.6 million left to reach the pre-pandemic level.

In December, employment continued to increase in the leisure and hospitality sector, among those most affected by Covid-19, as well as in professional and business services, industry, construction, transport and storage.

Almost two years after the arrival of the virus in the United States, sectors such as entertainment and hospitality, necessarily face-to-face, remain extremely vulnerable.

Many companies have put off their plans to return to office work, and sometimes indefinitely.

Restaurants and theaters find themselves in an increasingly difficult situation, due to chronic staff shortages and fears of new omicron infections.

Some school districts have resumed distance learning, or are threatening to do so, making it particularly difficult for women to return to work.