U.S. labor market saw setback for the first time in a year in January as COVID-19 infection disrupted business operations.
Private payrolls decreased by 301,000 jobs last month, the first drop since December 2020, after increasing by 776,000 in December.
Economists polled by Reuters had forecast private payrolls would increase by 207,000 jobs.
“The good news is that the job market should quickly bounce back as the Omicron variant fades,” said Gus Faucher, chief economist at PNC Financial in Pittsburgh, Pennsylvania, as reported by Reuters.
“Underlying demand in the economy is still strong, and businesses are still trying to hire. But the January drop in employment is another reminder that the economy will not fully return to normal until the pandemic is over.”