By Justin Lahart Close Justin Lahart Jan. 8, 2021 11:28 am ET America shed jobs last month, and the danger is that the labor market is going to get worse before it gets better.
The culprit was clearly the resurgence in Covid-19 cases that began in the fall. The leisure and hospitality sector, which includes restaurants and hotels, lost 498,000 jobs. State and local government employment fell by 51,000—an indication of how the budget strains the pandemic has brought are leading to cuts.