The 245,000 new jobs created last month are the lowest since the recovery in the United States began in May

The increase in jobs last month was below the 432,000 forecasts of economists surveyed by MarketWatch. The reaction on Wall Street was subdued, with stocks opening slightly higher.

See: MarketWatch Economic Calendar

The private sector wage bill increased by 344,000 people, but a decline of nearly 100,000 public sector jobs reduced overall employment gains.

The unemployment rate, meanwhile, fell for the seventh consecutive month to 6.7% from 6.9%, marking a new pandemic low.

Yet the decline mainly reflects the withdrawal of 400,000 people from the workforce because they could not find work or had to care for a family member who had caught the coronavirus.

The pace of hiring had slowed for months, as expected, after millions of people returned to their jobs in May and June. Still, the United States has only recovered just over half of the 22 million jobs lost at the start of the pandemic, and a winter spike in coronavirus cases threatens more layoffs at businesses such as restaurants, hotels, airlines, and mom and dad stores.

The easing labor market and growing damage from the coronavirus could pressure Congress to end a months-long standoff and adopt a new federal aid package for jobless and struggling businesses .

What happened: The biggest hiring gain in the past month came from warehousing and transportation companies like UPS and Fedex.

They created 145,000 new jobs before the holiday season, reflecting an increase in online shopping and an improvement in the goods-producing part of the economy.

Employment in professional businesses increased by 60,000 and health care businesses created 46,000 jobs as they continued to recover from a sharp drop in employment last spring.

Manufacturers have created 27,000 jobs, but companies are struggling to find skilled workers and suffer more absenteeism due to the pandemic.

Financial companies have also hired 15,000 people amid a market boom and flood of mortgage applications or refinancing of home and auto loans.

Outside these regions, employment was low or job losses increased.

The construction companies only hired 1,000 people. While home sales have increased during the pandemic, builders are also facing a shortage of skilled workers and they don’t want to invest too aggressively until the economy recovers more broadly.

Bars and restaurants are cutting jobs for the first time since the peak of the coronavirus pandemic in April. They face new restrictions across the country on how long they are open and the number of customers allowed.

Retailers, another industry hard hit by the pandemic, cut nearly 35,000 jobs in November. Part of the drop is likely due to a drop in seasonal hires in anticipation of less spending during the holidays, but retailers are also facing new government restrictions and fewer customers ready to go.

Government employment also fell by 99,000 last month, including the loss of 93,000 temporary workers used to help conduct the 2020 US Census. State and local employment also declined .

Hires in October and September were little changed, according to revised figures. The increase in new jobs in October was reduced from 28,000 to 610,000. Job gains in September were increased from 39,000 to 711,000.

Lily: Jobless claims fall during Thanksgiving week. Vacation blip?

Also: Unemployment claims are inflated and many unemployed are underpaid

Big picture: The economy is expected to rebound strongly next year if a large number of coronavirus vaccines prove to be effective, but it will experience more bumps before it gets there.

The recent slowdown in hiring and the threat of yet another round of layoffs due to the coronavirus are the latest bumps. How big – and whether that derails the recovery – will depend on whether the virus is soon brought under control and whether Washington approves more aid to workers and businesses.

Market reaction: The Dow Jones Industrial Average DJIA,
+ 0.35%
and S&P 500 SPX,
+ 0.38%
were to open higher in Friday trades.