Commissioner's Statement on the Employment Situation News Release — 2021-02-05

The unemployment rate fell by 0.4 percentage point to 6.3 percent in January, and nonfarm payroll employment changed little (+49,000). The labor market continued to be impacted by the coronavirus (COVID-19) pandemic and efforts to contain it. Notable job gains in professional and business services and in both public and private education were offset by losses in leisure and hospitality, in retail trade, in health care, and in transportation and warehousing. Substantial job losses related to the coronavirus pandemic first occurred in March (-1.7 million) and April (-20.7 million) of 2020. As economic activity resumed, employment increased by 12.6 million from May through November but declined again in December (-227,000) following a surge in the number of coronavirus cases. In January, nonfarm employment changed little (+49,000) and was below its February 2020 level by 9.9 million, or 6.5 percent. The response rate for the establishment survey was slightly below average in January.