Hiring surged in February as the U.S. economic activity picked up amid a progressive drop in Covid-19 cases and vaccines provided hope of more growth ahead.
The Labor Department on Friday reported that nonfarm payrolls jumped by 379,000 for the month and the unemployment rate fell to 6.2%. That compared to expectations of 210,000 new jobs and the unemployment rate to hold steady from the 6.3% rate in January.
An alternative measure of unemployment that includes discouraged workers and those holding part-time jobs for economic reasons was unchanged at 11.1%.
Employment growth had flattened over the past two months amid a rise in cases and renewed government-imposed shutdowns over the winter. Still, most economic indicators continued to rise, and first-quarter GDP growth is expected to defy previous expectations for a flat or only slightly better environment.
Federal Reserve officials have been watching the jobs numbers closely not only for overall growth in payrolls and a drop in the unemployment rate but also for the breadth of the jobs recovery. The central bank has pledged not to raise interest rates until it sees the gains spread across income, gender and racial lines, even if that means risking higher inflation.
Fed Chairman Jerome Powell reiterated that stance Thursday, saying he doesn’t foresee the U.S. economy hitting the central bank’s goals anytime this year.
Despite the February gain, the jobs market still has a long way to heal, with millions of workers displaced by the pandemic still looking for employment. Recent indicators show that job postings are continuing to increase, but still at a rate well below what is needed for a full recovery.
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