US Job Growth Blows Past Expectations as Recovery Gets Back on Track

The U.S. 💰Economy created more jobs than expected in February as falling new COVID-19 cases and additional pandemic relief money from the government boosted hiring at restaurants, putting the labor market recovery back on firmer footing.

Though job growth momentum is expected to build in the months ahead amid an acceleration in the pace of vaccinations and more fiscal stimulus, it will probably take several years for the labor market to heal from the deep scars inflicted by the pandemic, which is now in its second year.

The Labor Department’s closely watched employment report on Friday showed at least 4.1 million Americans have been out of work for more than six months, accounting for 41.5% of the unemployed population in February. Another 3.5 million have permanently lost their jobs.

Federal Reserve Chair Jerome Powell on Thursday offered an optimistic view of the labor market, but cautioned a return to full employment this year was “highly unlikely.”

“Looking ahead, it appears the ship is pointed in the right direction and the additional stimulus coming from Congress should be the wind in the sails to get the 💰Economy back on track,” said Charlie Ripley, senior investment strategist at Allianz Investment Management.

Nonfarm payrolls surged by 379,000 jobs last month after rising 166,000 in January. Payrolls fell in December for the first time in eight months. Employment remains 9.5 million below its pre-pandemic level. Economists polled by Reuters had forecast February payrolls increasing by 182,000 jobs.

Restaurants and bars hired 286,000 workers last month, accounting for 75% of the gain in payrolls. There were also increases in employment at other leisure and hospitality businesses.