Job Creation Smashes Expectations

Americans return to work,
destroying expectations and indicating the economy is growing stronger.

In February, the US economy added 678,000 jobs, beating experts’ projections.

It was the most productive month for employment creation since July. According to the Bureau of Labor Statistics, the country still needs to add 2.1 million jobs to get back to previous levels in February 2020 level in order to regain all of the jobs lost during the epidemic.

The consensus forecast for the report — 400,000 jobs – was once again off the mark. During the pandemic, the labour market’s erratic changes from month to month made forecasting virtually impossible.

The jobless rate fell to 3.8 percent, which was better than predicted and marked a new post-pandemic low.

The leisure and hospitality industry, which was impacted the most by Covid-related losses, added 179,000 jobs back. But to get back to pre-pandemic levels, the sector will require additional 1.5 million employment.

The majority of the jobs produced in February were in restaurants and bars, as Americans began to mingle more once the Omicron surge receded.

Job growth was particularly robust in professional services, health care, and construction.

Wages were unchanged in February, following a period of rapid wage rise as firms competed for talent and fought to keep current employees despite the persistent labour shortage.

Last month, average hourly wages were $31.58 per hour, barely one penny more than in January, bucking the recent trend.

That’s excellent news for those concerned that growing wages may exacerbate already-high inflation, such as the Federal Reserve.

The robust data released on Friday, which included a new Covid-era low for the unemployment rate, means the Fed’s expected interest rate hike later this month is all but guaranteed.

(We’ve heard that before.)

But a stronger than expected jobs report shows that people are returning to work and that the economy is strengthening.