The U.S. economy brought back more jobs than expected in March, presaging even faster employment growth in the coming months as more Americans become vaccinated and jobs across industries return.
Highlights from the Department of Labor report, compared to consensus estimates compiled by Bloomberg:
- Change in non-farm payrolls: +916,000 vs. +660,000 expected, and a revised +468,000 in February
- Unemployment rate: 6.0 percent vs. 6.0 percent expected, and 6.2 percent in February
- Average hourly earnings, month-over-month: -0.1 percent vs. +0.1 percent expected, and a revised +0.3 percent in February
- Average hourly earnings, year-over-year: +4.2 percent vs. +4.5% expected, and a revised +5.2 percent in February
At 916,000, payrolls last month grew by the most since August. Payrolls for both January and February were also revised higher: January’s payroll change was upwardly revised to 233,000 from the 166,000 previously reported, and February’s job growth totaled 468,000, up from the 379,000 previously reported.
Growth in service sector employment again comprised the biggest contributor to the monthly payrolls increase. Some of the most badly beaten down areas of the service economy made strides in recovering lost jobs in March, reflecting easing social distancing restrictions and increased capacity limits at bars, restaurants and other establishments. Leisure and hospitality payrolls rose by 280,000 in March after an upwardly revised gain of 384,000 in February. However, these industries remain more than 3 million payrolls short of their pre-pandemic levels, representing the hardest-hit industry category tracked by the Bureau of Labor Statistics.
Click here to see the full report from Emily McCormick in Yahoo Finance.
