A hiring surge in March hints at a sustained economic recovery.
WASHINGTON — America’s employers unleashed a burst of hiring in March, adding 916,000 jobs in a sign that a sustained recovery from the pandemic recession is taking hold as vaccinations accelerate, stimulus checks flow through the economy and businesses increasingly reopen.
The March increase — the most since August — was nearly double February’s gain of 468,000, the Labor Department said Friday. The unemployment rate declined to 6% from 6.2%.
Even with last month’s robust increase, the economy remains more than 8 million jobs short of the number it had before the pandemic erupted a little more than a year ago. But with the recovery widely expected to strengthen, many forecasters predict enough hiring in the coming months to recover nearly all those lost jobs by year’s end.
The increasingly bright outlook for the labor market follows a year of epic job losses, waves of coronavirus infections and small-business closures. Numerous signs suggest the economy is improving. Consumer confidence in March reached its highest level since the pandemic intensified.
A survey found that manufacturing grew in March at its fastest pace since 1983. In addition, vaccinations are increasingly being administered, although new confirmed infections have risen in recent weeks.
The $1,400 checks in President Biden’s $1.9-trillion economic relief plan have sharply increased consumer spending, according to Bank of America’s tracking of its debit and credit cards. Spending jumped 23% in the third week of March compared with pre-pandemic levels, the bank said.
Spending had begun to rise in March even before the stimulus checks arrived as viral case counts have tumbled from their heights in January.
Americans are increasingly willing to travel and dine out, though not yet at their pre-pandemic pace. Roughly 1.5 million people traveled through airports March 28, according to the Transportation Security Administration. That was roughly eight times the figure of a year ago, although it was still down sharply from 2.5 million on the same day in 2019.
The transportation analytics firm Inrix has calculated that daily car trips returned to pre-pandemic levels late last month. Many of those trips probably have been to restaurants, where the volume of seated diners was just 25% below pre-pandemic levels, on average, in the last week of March, according to OpenTable, a restaurant software provider. That’s up from 50% below pre-pandemic traffic just six weeks earlier.
The burgeoning economic activity is showing signs of translating into more jobs.
Karen Fichuk, chief executive of Randstad North America, a recruiting firm, said the company is seeking to fill 38% more permanent jobs than it was at the end of last year. Demand for workers is particularly strong in manufacturing, information technology, logistics and healthcare.