For the fourth month in a row, the United States economy showed signs of recovery in its latest labor report. The U.S. added a total of 216,000 jobs in December, significantly beating out analysts’ expectations of 145,000 jobs. The boost in job growth for the month of December puts the United States on track to possibly reach pre-pandemic employment levels shortly.
The majority of the new jobs were created in the leisure and hospitality industries, with an increase of 149,000 and 117,000 jobs created, respectively. This growth in leisure and hospitality supports the idea that the United States is looking to reopen a large portion of the economy post-pandemic, but there will still be some lingering effects to overcome.
Despite job growth in December, the United States economy overall for 2020 had a net job loss of 5.9 million jobs. This is the largest year-long decline in employment since the early 1950s. The decline in employment can be attributed to the devastating effects of the coronavirus pandemic, which led to mandatory business closures and affected consumer spending habits.
The labor report for December showed further evidence that the U.S. economy is on the road to recovery. Average hourly pay for workers across the nation increased by a significant percentage of 9.9 percent, the largest increase recorded since this reporting measure was implemented in 2006. The average wage is now 10.7 percent higher than before the pandemic.
The U.S. Department of Labor’s report for December certainly ended 2020 in a positive note. Hopefully the positive momentum will continue into 2021 and the United States will continue to create new jobs, stimulate virtually all industries, and bring back the same level of economic activity it enjoyed before the pandemic.
“Surge of 216,000 Jobs in U.S. – Smashing Expectations in December
