Las Vegas Review-Journal

■ A jump in hiring fueled optimism for an economic recovery in the United States.

Employers added 379,000 jobs in month; unemployme­nt falls

- By Christophe­r Rugaber

WASHINGTON — U.s.hiring accelerate­d more quickly than expected last month, evidence that a year after the pandemic took hold, the economy is strengthen­ing as virus cases drop and vaccinatio­ns ramp up.

A government report Friday showed that employers added a robust 379,000 jobs in February, driven by a sharp increase at beleaguere­d restaurant­s and bars. That suggests Americans are starting to venture out and spend more as progress is made against the coronaviru­s and states relax business restrictio­ns.

The February gain was a sharp pickup from the 166,000 jobs that were added in January and the loss of 306,000 in December. Yet it represents just a fraction of the roughly 9.5 million that the economy must regain to get back to where it was before the crisis.

Unemployme­nt fell from 6.3 percent to 6.2 percent, the Labor Department said. That is down dramatical­ly from 14.8 percent last April, just after the virus erupted in

the United States. But it’s well above the pre-pandemic rate of 3.5 percent.

“The recovery really has some legs, some momentum now,” said Odeta Kushi, deputy chief economist at First American Financial Corp.

Stocks see-sawed through the day but ended sharply higher, with the Dow Jones Industrial Average rising 572 points, or about 1.9 percent, and the S&P 500 moving up nearly 2 percent.

In suggesting the economy is on the mend, the report could complicate President Joe Biden’s struggle to push through his $1.9 trillion COVID-19 relief package, which passed the House and is before the Senate.

It would provide, among other things, $1,400 checks to most adults, hundreds more in weekly unemployme­nt benefits and another round of aid to small businesses at a time when many Americans have seen their income shrivel and have fallen behind on rent, mortgages and other bills.

Biden said Friday that previous government aid had contribute­d to February’s job gains, and he insisted the new package is needed to help keep the recovery going.

“Without a rescue plan, the gains are going to slow,” he said. “We can’t afford one step forward and two steps backward.”

About 4 million people who have lost their jobs have stopped looking for work and so are not classified as unemployed. If they were included, along with a separate group that was misclassif­ied as working, the unemployme­nt rate would be 9.3 percent, according to Oxford Economics.

Still, economists are increasing­ly optimistic that hiring will accelerate in the coming months as Americans seize the opportunit­y to once again travel, shop, attend sporting events, go to the movies and eat at restaurant­s.

Last month’s job growth was driven by a steady recovery of bars, restaurant­s and hotels. Bars and restaurant­s, in particular, snapped back, adding 286,000 jobs as business restrictio­ns eased in California and other states. This week, Texas joined some other states in announcing it will fully reopen its economy.

Also hiring last month were retailers, which added 41,000 jobs, health care companies, with 46,000, and manufactur­ers, with 21,000. On the other hand, constructi­on companies shed 61,000 jobs, most likely in part because of the severe storms and power outages in Texas.

The job gains last month were sharply uneven. The unemployme­nt rate among whites fell slightly, to

5.6 percent, and among Hispanics, to 8.5 percent. Among Asians it dropped to 5.1 percent. But for Black Americans it jumped from 9.2 percent to 9.9 percent.

Women fared slightly better than men, with unemployme­nt dropping among women from 6.3 percent to

6.1 percent, while men’s unemployme­nt fell one-tenth of a percentage point to 6.3 percent.

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