US job growth in March was much higher than the Dow Jones’ estimate of 675,000, and was the fastest since August 2020. Unemployment fell to 6 per cent. CNBC.
The increase was strongest in the leisure and hospitality sector. In construction there was a growth of 110,000 jobs. The Labor Department reported Friday that strong economic growth (chicken or egg?) And an intense vaccination campaign contributed to job growth in both sectors.
The total was the highest since 1.58 million jobs were added in August 2020, during Donald Trump’s swan song.
The economics of the healing process
This indicates that the economy is improving. He said those who lost their jobs are returning to work as the recovery continues and restrictions are lifted Quincy Crosby, Senior Market Strategist at Prudential Financial. “The only concern is that we will have another wave of Covid that leads to another round of lockdown.”
Stock market futures did not respond to the numbers, despite rising government bond yields. Wall Street was not open for trading on Friday. The bond market had a short day in connection with the Good Friday celebration.
Employment increased across the board, but was particularly strong in the areas hardest hit by the epidemic.
An analysis of job growth in various sectors provides us with the following overview:
- 280,000 new employees in the hospitality sector;
- 190,000 in educational institutions;
- 110,000 in construction;
- 48,000 in transportation and storage;
- 42,000 with other services;
- 25,000 with social assistance;
- 24,000 in the wholesale trade;
- 23,000 in retail;
- 21,000 in mining.
- 19,000 in the laundry and personal services sector;
- 16,000 in the world of financial activities.
From the Federal Reserve
The frequency increases coupled with an unprecedented volume of Stimulus assays The government raised concerns about inflation. This is despite the fact that the officials in the Federal Reserve Claim that any increases will be temporary.
Many economists have speculated that the jobs data for March may spur the Fed to slow the pace of monthly asset purchases by the end of the year.
The Fed is currently buying at least $ 120 billion of bonds each month while keeping short-term interest rates close to zero.
Incidentally, the reviews added 156,000 jobs to the January and February totals.