HICKEY Jobs Report Update – December 2021
Hickey Jobs Report Update – U.S. added 199,000 jobs as unemployment dropped below 4% in December 2021.
Despite addition of 199,000 jobs in December, dropping unemployment below 4%, the latest U.S. Bureau of Labor Statistics Jobs Report misses expectations.
The release of the U.S. Bureau of Labor Statistics December 2021 Employment Situation Summary, often referred to as the Jobs Report, led to disappointment by many economists by missing estimated figures by more than 50%. Economists are also concerned as the surveys were mostly conducted before the latest omicron surge, thus not accounting for the significant returned impact of COVID-19 across America.
Strongest gains were in Leisure & Hospitality and Professional & Business Services, along with Manufacturing, Construction, and Transportation & Warehousing.
Unemployment dropped below 4% (3.9%) for the first time since the onset of COVID-19, which is a total drop of 2.8% over the past year, or 4.5 million workers. Before the pandemic (Feb 2020), the nation’s unemployment rate was at 3.5%, or 5.7 million. The total unemployed count currently sits at 6.3 million in the U.S.
Over this past year, the economy added a total of 6.4 million jobs, which amounted to an average of 537,000 workers per month. The monthly average does amount to a new record, but the U.S. economy is still 3.6 million below the pre-pandemic levels.
Key Industries
Leisure and Hospitality
This month’s largest gainer in jobs was leisure & hospitality as the industry added 53,000 jobs. Food services and drinking places led the way with 43,000 additions. Overall, the industry is still down by 7.2% from pre-pandemic levels.
Professional and Business Services
Almost returning to pre-pandemic levels, the professional and business services sector added 43,000 jobs in December. Led by computer systems design and related services, architectural and engineering services, and scientific and development services, the wider employment base in only 35,000 jobs below February 2020 counts.
Manufacturing
America’s manufacturing industry added 26,000 jobs in the previous month, which included 8,000 in durable goods manufacturing. The latter was boosted by workers returning from a labor strike during the observed period. Industry is still down by 219,000 workers since the onset of COVID-19.
Construction
Following strong gains across the final months of 2021, the construction sector added 22,000 jobs in December. Biggest gainers were in nonresidential specialty trade contractors and in heavy and civil engineering construction. In total, employment in the construction sector is below pre-pandemic levels 88,000 jobs.
Transportation and Warehousing
Still the strongest industry in regards to employment counts, the transportation and warehousing sector increased their workforce by 19,000 jobs. Since the pandemic started, the industry is up by 218,000 workers, led by robust job growth in couriers and messengers and in warehousing and storage.
Wholesale Trade
The wholesale trade industry added 14,000 workers across the sector in the previous month. With the gains, the industry is now 129,000 workers below February 2020 levels. .
Other Industries
Outside of the mining sector adding 7,000 workers in December, the economy saw relatively little to no change across the remaining assessed sectors.
For more information on the latest Jobs Report, including additional details on the data concepts and statistical methodologies utilized, visit the Bureau of Labor Statistics Employment Situation Summary website.
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