The U.S. economy took a big step forward in March with total nonfarm payroll employment up by 916,000, beating analysts’ predictions. In addition, the unemployment rate inched down to down to 6.0 percent, the U.S. Bureau of Labor Statistics on Friday (April 2).
People getting vaccinated, states lifting coronavirus restrictions and consumers gaining confidence and leaving their homes more often have all helped to boost the economy. In addition, federal stimulus programs are helping to boost the economy.
Economists surveyed by The Wall Street Journal stimated that the number of jobs added by employers would be about 675,000, with the BLS reporting a significantly higher number. The 916,000 jobs added in March were spread across a wide variety of industries. Leisure and hospitality, public and private education, and construction led the way in renewed economic activity.
“In March, employment in leisure and hospitality increased by 280,000, as pandemic-related restrictions eased in many parts of the country,” the BLS reported. This sector was hard-hit by the economic collapse, however. “Employment in leisure and hospitality is down by 3.1 million, or 18.5 percent, since February 2020.”
Employment in education was a big winner in the month’s job surge as pandemic fears and restrictions have lessened. “Employment rose by 76,000 in local government education, by 50,000 in state government education, and by 64,000 in private education,” the report noted. This sector, too, was hard-hit by lockdowns and the widespread canceling of in-person teaching. Construction was another big winner in March, with 110,000 jobs added.
The BLS reported on Thursday (April 1) that 719,000 initial jobless claims were filed, up from the previous week’s revised total of 658,000. The Employment Situation report issued on Friday (April 2) shows the unemployment rate, at 6 percent, improved dramatically from its pandemic high in April 2020. However, the rate is 2.5 percentage points higher than before the COVID-19 crisis hit in February 2020.
The BLS said that the ranks of the unemployed, totaling 9.7 million people, continued to improve in March — but is still 4.0 million higher than in February 2020. The number of long-term unemployed (those jobless for 27 weeks or more) stayed about the same, at 4.2 million. Compared to February 2020, however, the number of long-term unemployed has grown by 3.1 million.
Among the unemployed, the number of individuals on temporary layoff declined by 203,000 last month, to 2.0 million. The number of unemployed individuals who want full-time work but have seen their hours cut back — or could not find full-time work — held steady at 5.8 million, up by 1.4 million from February 2020.