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Reversing job market opens door to larger Biden stimulus

The latest coronavirus wave slammed the U.S. economy in December, wiping out 140,000 jobs, raising pressure to accelerate vaccinations and blowing the door open for President-elect Joe Biden and a narrowly Democratic Congress to push for even more stimulus spending within weeks.

The December employment report, the last to be released during President Donald Trump’s administration, leaves the nation around 11 million short of the level of jobs from before Covid-19 crushed the economy and wiped out around 23 million jobs. Trump’s record will now include a largely recovered stock market but an enormous net loss of jobs.

Most of the losses in December, nearly 500,000, came in the leisure and hospitality industries as fresh lockdowns and lower travel led to widespread layoffs. The expiration of some of the first big stimulus package, passed back in March, also left consumers with less money to spend, hitting demand in the economy.

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