(NewsNation Now) — U.S. employers added just 49,000 jobs in January, a sign that the coronavirus pandemic retains a tight grip on the economy nearly a year after it triggered a recession.

The tepid increase followed a decline of 227,000 jobs in December, the first loss since April.

The unemployment rate for January fell sharply from 6.7% to 6.3%, the Labor Department said Friday. About half the drop occurred because some of those out of work found jobs, while others stopped looking for work and were no longer counted as unemployed.

“It’s very clear our economy is still in trouble,” Biden told reporters after a meeting with top Democrats from the U.S. House of Representatives at the White House. “Some in Congress think we did enough – others think we can do little or nothing – that’s not what I see.”

Biden said Friday he is going to “help the American people who are hurting now.”

That’s why I’m so grateful to the House and the Senate for moving so fast on the American Rescue Plan. Here’s what’s in that plan. First, it puts $160 billion into our national COVID-19 strategy, which includes more money for manufacturing, distribution, and setting up of vaccine sites…So job number one of the American Rescue Plan is vaccines, vaccines. The second, the American Rescue Plan is going to keep the commitment of $2,000. 600 has already gone out, $1,400 checks to people who need it. This is money directly in people’s pockets. They need it, we need to target that money so folks making $300,000 don’t get any windfall.

President Biden

White House Press Secretary Jen Psaki held a briefing with Council of Economic Advisers member Jared Bernstein Friday afternoon. She answered questions from reporters and announced upcoming meetings and reiterated the process of the president’s American Rescue Plan.

Nearly 10 million jobs remain lost to the pandemic.

December’s drop — the first in eight months — came amid renewed restrictions on businesses like restaurants and bars to slow a resurgence in coronavirus infections.

Some of those restrictions were loosened in January, though perhaps not in time to affect the jobs report, which measures employment in the middle of each month.

As hiring has slowed, many employers have continued to lay off workers. The number of applications for unemployment benefits, though declining for the past few weeks, remained at an elevated 779,000 last week.

The report comes amid President Joe Biden’s push for a $1.9 trillion stimulus package, which would provide $1,400 checks for most U.S. individuals and a $400 weekly unemployment payment on top of state benefits. The package would also extend two federal jobless aid programs, from mid-March through September.

The Senate worked late into the night on Thursday, with Biden’s fellow Democrats aiming to override Republican opposition to the sweeping COVID-19 relief plan.

The damage to the job market since March has widened financial inequality in the United States, especially hurting women and people of color. At the same time, Americans fortunate enough to have kept their jobs have amassed $2.3 trillion in savings — double the pre-pandemic total. That enlarged pool of savings could fuel a rapid rebound in spending as business restrictions are lifted and more Americans become more confident about shopping, dining out and traveling.

The Associated Press and Reuters contributed to this report.