US loses 140,000 jobs, first monthly drop since spring

WASHIGTON >> U.S. employers shed jobs last month for the first time since April, cutting 140,000 positions, clear evidence that the economy is faltering as the viral pandemic tightens its grip on consumers and businesses.

At the same time, the unemployment rate stayed at 6.7%, the first time it hasn’t fallen since April.

Friday’s figures from the Labor Department depict a sharply uneven job market, with losses concentrated among restaurants, bars, hotels and entertainment venues, many of them affecting low-income employees, while most other sectors are still adding workers. Still, the nation has nearly 10 million fewer jobs than it did before the pandemic sent it into a deep recession nearly a year ago, having recovered just 56% of the jobs lost in the spring.

The pandemic will likely continue to weaken the economy through winter and perhaps early spring, and fur ther job losses are possible in the coming months. But many economists say that once coronavirus vaccines are more widely distributed, a broader recovery should take hold in the second half of the year. The incoming Biden administration, along with a now fully Democratic-led House and Senate, is also expected to push more rescue aid and spending measures that could accelerate growth.

“Hopefully it is indeed darkest before the dawn,” said Leslie Preston, senior economist at TD Bank. “We’ve got the vaccine and the stimulus, which are imminent, and which we do expect to turn things around.”

For now, the renewed surge in virus cases, as well as cold weather, has caused millions of consumers to avoid eating out, shopping and traveling. Re- imposed business restrictions have shut down numerous restaurants, bars, and other venues. Economists at TD Securities estimate that more than half the states have restricted gatherings to 10 or fewer people, up from about a quarter in September. New York and California, among others, placed strict new limits on restaurants last month.

New viral cases continue to set daily records. And on Thursday, the nation registered more COVID-19 deaths in a single day than ever before, topping 4,000. The virus is surging in several states, with California, the largest state, hit particularly hard. Skyrocketing caseloads there are threatening to force hospitals to ration care.