Jobs boost in the US as Covid cases show drop

THE US 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 labour 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 labour market to heal from the scars inflicted by the virus.

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

Federal Reserve chair Jerome Powell offered an optimistic view of the 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.