US economy sheds 140,000 jobs in December in end to brutal year

The US economy shed 140,000 jobs in December, marking a horrendous end to the most abysmal year for job losses on record.

As snapshots of the United States labour market go, December’s jobs report is ugly, even by pre-pandemic standards.

The economy shed 140,000 jobs last month, the US Department of Labor said on Friday – marking a horrendous end to the most abysmal year for job losses on record.

Taken as a whole, the data tells us what other metrics have been signaling since the end of the summer – that the US economic recovery lost steam in the fourth and final quarter of 2020.

A number of challenges have been hampering the recovery – first and foremost the return of business-sapping restrictions designed to contain spiraling COVID-19 infections.

The onset of winter has also created another barrier for struggling businesses. Both of these factors were reflected in the leisure and hospitality sector which lost nearly half a million jobs last month.

The lapsing of federal jobless benefits at the end of July and the end of December also hobbled the recovery in the final three months of the year.

But economists are looking to several developments that could help accelerate economic growth – and crucially jobs creation this year.

(this story is developing)