March 4, 2021

The US unemployment rate falls to 6.3% in January, four tenths less, and 49,000 jobs are created



The unemployment rate in the United States experienced a decline of four tenths in January, to 6.3%, so the labor market continued to recover after jobs were destroyed in December due to the impact of the new wave of Covid-19 infections, according to figures published this Friday by the labor statistics office of the US Department of Labor .

The country’s economic recovery slowed last year until it culminated in December, when 227,000 jobs were destroyed. In January, the country has returned to the path of job creation with 49,000 additional nonfarm payrolls. Since the recovery began in May 2020, the country has regained more than 12 million jobs, just 60% of the jobs lost in April, when the crisis destroyed nearly 21 million.

In this way, the unemployment rate has continued to move away from the all-time highs that it reached in spring and summer, of up to 14.7%. In October 2009, the peak of the global financial crisis that began in 2008, the unemployment rate in the United States reached 10%, while the historical maximum until this year was in December 1982, when it reached 10.8% .

The number of long-term unemployed, those who have remained unemployed for a minimum of 27 weeks, it rose to 4,023 million people, which is equivalent to an increase of 67,000 unemployed. Its weight with respect to the total number of unemployed rose by more than two percentage points, to 39.5%.

On his side, the total number of unemployed people was 10.13 million, which decreased by 606,000 people. The participation rate in the labor market during the first month of 2021 fell by one tenth, to 61.4%. Compared to December, the workforce decreased by 406,000 people.

Thus, a large part of the reduction in the unemployment rate has been due to the increase in payrolls in the agricultural sector and the unemployed who have left the workforce.

By groups of workers, the unemployment rate among women fell three tenths, up to 6%, while among men it fell by four tenths, also down to 6%. Unemployment among young people stood at 14.8%, 1.2 points less.

Of the 49,000 jobs created in January, only 6,000 came from the private sector, the other 43,000 were registered with the Government, coinciding with the inauguration of the new president of the United States, Joe Biden.

In this way, the professional services sector and companies generated 97,000 new jobs, although this increase was offset by the reduction of 7,000 people in educational and health services and by the dismissal of 37,800 people in the retail trade and another 27,800 in transport and storage of goods.

Median workweek length fell to 35 hours in January, while median hourly earnings rose 6 cents to $ 29.96.

Likewise, the Department of Labor has reported that the number of jobs created in November has been revised downwards, up to 264,000 people (72,000 less), while the December data has been adjusted to 227,000 jobs destroyed (87,000 more than estimated).

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