By Xavier Fontdegloria

The nonfarm private sector in the U.S. lost jobs in December for the first time since the economy was brought to a halt in April amid the Covid-19 pandemic, data from ADP National Employment Report showed Wednesday.

Total U.S. nonfarm private employment decreased by 123,000 in December from November. Economists polled by The Wall Street Journal were expecting it to show a gain of 60,000 jobs.

December's reading signals that the job-creation trend that started in May halted. In November, 304,000 jobs were gained, slightly down from an initial estimate of 307,000.

"As the impact of the pandemic on the labor market intensifies, December posted the first decline since April 2020," Ahu Yildirmaz, co-head of the ADP Research Institute, said.

Medium businesses, between 50 and 499 employees, are the only ones which added jobs, with an increase of 37,000. Small businesses, with a maximum of 49 employees, lost 13,000 jobs and large businesses, those of at least 500 workers, lost 147,000 jobs.

By sector, the vast majority of lost jobs were in the service-providing sector, particularly in leisure and hospitality, which registered a fall of 58,000 jobs. Trade, transportation and utilities sector saw a decline of 50,000 jobs.

The goods-producing sector posted an overall loss of 18,000 jobs, data showed, particularly in the manufacturing sector.

The report, carried out by the ADP Research Institute along with Moody's Analytics, is based on data through the 12th of the month.

The U.S. Department of Labor is expected to release its December employment report, which covers the same period as the ADP National Employment Report, on Friday. Economists are expecting it to show nonfarm payrolls up 50,000 jobs for the month, and an increase in the unemployment rate to 6.8% from 6.7% in November.

Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com

(END) Dow Jones Newswires

01-06-21 0846ET