In March, the most jobs in the U.S. with improvement in most industries were added, as more vaccinations and fewer business restrictions supercharged the labor market recovery.
Nonfarm payrolls were revised to 916,000 last month and February employment was increased up to a 468,000 gain, according to a Labor Department report Friday. The median estimate in a Bloomberg survey of economists was for a 660,000 rise. The unemployment rate fell to 6%; rising Covid 19 infections had forced the labor market for months, but now more than two million Americans are getting vaccinated every day and economic activity is improving.
This also helps explain why the labor participation rate edged up in March. What's more, companies have a clearer view of potential demand as a wave of stimulus-subsidized consumer spending is poised to wash over the nation's service providers.
Local and state education employment increased by about 126,000, reflecting the return of more in-person learning at schools. The end of the pandemic appears to be in sight as vaccine distribution accelerates, and the economic recovery looks like it is going at the punch, said Daniel Zhao, senior economist at Glassdoor in a note.
We may look at a bright summer with monthly gains of over a million jobs, getting us much closer to the pre-pandemic employment. While stronger sales and daily progress in the fight against coronavirus will help bring the labor market closer to its pre-pandemic employment levels, a full recovery takes time.
Following the report, the 10-year yields received a bump higher, with the rate of 1.69% remained after being elevated by around 2 basis points from its 10- day close.
The U.S. stocks are closed for a holiday on Friday, the payroll figures showed broad gains across industries, driven by a 280,000 surge in leisure and hospitality. Construction payrolls jumped 110,000 after dipping in February amid severe winter weather.
Employment in education also climbed as more schools opened; manufacturing employment increased by 53,000 last month, the biggest increase since September. The$ 1.9 trillion stimulus package signed by President Joe Biden last month should give an additional shot of adrenaline to hiring amid renewed support for businesses and individuals. Marty Walsh called the jobs report very encouraging in an interview on Bloomberg Television.
But he said we have a long way to go.
In addition, the broad infrastructure plan that Walsh announced on Wednesday will help to revive labor and the economy in the future, Biden said.
A report released Thursday from the National Federation of Independent Business showed a record share of small businesses owners in March said they had filled empty positions. This indicates that employment will remain strong in the coming months.
Further, Federal Reserve Chair Jerome Powell has pledged that the central bank will continue to support the economy with accommodative monetary policy despite the recent uptrend in economic and employment data.
Even with the sharp decline in March, payrolls remained 8.4 million below the pre-pandemic peak of about 152.5 million. The recovery is far from complete, said Powell at the hearing on March 23 in the House Financial Services Committee.
As we have emphasised throughout the pandemic, the path of the economy continues to depend on the course of the virus. Massive job gains drive unemployment down and continue to do so over the next several months.
The significance of lowering unemployment is to be less relevant until labor force participation shows a stronger recovery. For the full report, click here.
The U- 6 rate, also known as the unemployment rate, declined to 11.1% from 10.7% in 2001. It is often thought of as a more inclusive measure of unemployment than the headline figure because it also accounts for those who stopped looking for a job because they were discouraged about their prospects and those who worked part-time but wanted a full workweek.
The participation rate, which is the share of population that is either actively looking for work or actively working to obtain it, improved from 61.4% last month to 61.5%.
The so-called prime-age participation rate, or the participation rate among those ages 25-54, climbed as more women returned to work. The report also showed the average workweek increased to 34.9 hours to 18 minutes, partly reflecting a bounce back from severe winter weather a month earlier.
Unemployment rate fell for all races except Asian-AmericansJobless rate for Asian-Americans rose to 5.1%, reflecting both the increase in the number of people entering the labor force and more unemployedBlack unemployment rate fell to 9.6%, still the highest among racesJobless rate among Hispanics fell to 7.9%; unemployment rate for Whites dropped to 5.4% For more articles like this, please visit bloomberg.com at bloomberg.com. Subscribe now to stay ahead with the best business news source on the Internet.