Non Farm Payrolls increased only by 49,000 jobs, Unemployment rate ticks lower to 6.3 percent January 2021

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United States Labor markets Non-farm payrolls only increased by 49 ,000 jobs for the month of January 2021.  Whilst rate of unemployment improved ticking down by 0.4 percentage points to 6.3 percent, according to the U.S. Bureau of Labor and Statistics.

The hospitality and leisure, continued  a pattern of consecutive job losses similar to the previous month of December 2020. Additionally, Job losses were incurred from various economic sectors such as retail trade, health care, construction, transportation and warehouse labor sectors due to the on going deliberating economic effect of the Coronavirus Pandemic.

Coronavirus (COVID-19) Effect on the U.S. Economy

As of this date there have been 462,000 deaths and 27 million infection cases reported in the U.S. related directly to the Coronavirus pandemic.  Early Vaccination efforts are being made to curtail the Virus through a three step plan implemented by the newly elected  U.S. President Joe  Biden tasking his administration to supply states weekly shipments of 10 million doses of vaccine for the next three weeks. This allows states to have the ability to plan in advance how many people they can inoculate on daily bases.  Lastly, the Biden administration has purchased 200 million additional doses of vaccines from BioNTech, Pifzer and Moderna doubling down on it’s efforts provide required levels of two doses of vaccine to the American pubic by the summer of 2021.

The President also has introduced a 1.9 trillion dollar economic rescue initiative focusing on providing immediate relief to the American people through providing stimulus checks, assistance to the unemployed, states, and local governments, feeding the hungry, curtailing evictions, financial funding for small business economically impacted by the pandemic as well as additional funding for vaccinations and testing.

  The number of people who teleworked from home lowered 0.5 percentage points from the previous December rate  of 23.7 percent to January  rate of 23.2 percent.    The unemployment rate improved in the month of January ticking down 0.4 percentage points from previous month to 6.2 percent for the month January 2021, bringing the count to 10.1 million employed individuals in the US. Labor market.   The U.S. Jobs markets encountered positive increase in the professional business services, public and private education sectors according to the U.S. Bureau of Labor and Statistics.

Approximately 847 thousand U.S. workers file for jobless claims over the last week. January 2021.

 January 2021 Jobs report

According to the U.S. BLS  the sectors that suffered and incurred significant job losses throughout the Labor markets are reflected in January’s, employment data: leisure and hospitality incurred a minor hit declining 61,000 jobs, with food services and drinking places losing -19,000 jobs.  Retail trade suffered loses of 38,000 jobs despite adding 135k jobs the previous month Dec 2020.

 

On a more positive note the U.S.  Labor market did see some moderate gains in the professional and business services which increased by 97,000 of new employment in January 2021, Management and technical consulting services gained +160000 jobs, employment increased +11,000 in computer systems design and related services,  job gains were seen in local government education of +49,000, as well as private education of +34,000.

 

 Most Wall Street Economist assumptions were within the margin error in regards to correctly identifying a positive net increase within the U.S. Jobs market survey.  These experts predicted that the economy would rise by  50 thousand jobs for the month of January 2021.

 

The change in November 2020 NFP release employment revised down by 72,000 from +264,000 to 654K . November and December revised down 159,000 from the previous report.  See the full story of previous July’s 2020 NFP numbers;  Non farm payrolls recedes by 140 thousand Jobs; unemployment remains at 6.7 percent December 2020