Economy: U.S. adds 379,000 jobs in February, spurring recovery hopes.
Eased restrictions might prod Americans to spend
WASHINGTON – U.S. employers added a surprisingly robust 379,000 jobs last month in a sign the economy is strengthening as virus cases drop, vaccinations ramp up, Americans spend more and states ease business restrictions.
The February gain marked 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 return to where it was before the crisis.
Unemployment fell from 6.3% to 6.2%, the Labor Department reported Friday. That is down dramatically from 14.8% last April, just after the virus erupted in the United States. But it’s well above the prepandemic rate of 3.5%.
“The recovery really has some legs, some momentum now,” said Odeta Kushi, deputy chief economist at First American Financial Corp.
In suggesting the economy is on the mend, the strong jobs report could complicate President Joe Biden’s struggle to push through his $1.9 trillion COVID-19 relief package, which passed the House. Senate approval was considered likely over the weekend, after which the House would consider any changes and whisk it to Biden for his signature.
It would provide, among other things, $1,400 checks to most adults, more money for 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.
White House press secretary Jen Psaki said Friday that the job gains have been too slow and that much higher unemployment rates among Hispanic and Black Americans show the need for more aid. She noted that it will take several years to recover from the pandemic layoffs.
“This is unacceptable,” Psaki said. “Congress must pass the American Rescue Plan now so we can get Americans back to work.”
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%, according to Oxford Economics.
Still, one year after the pandemic triggered a sudden recession, economists hope Americans will spur growth with travel, shopping, taking in the movies and eating at restaurants.
Bars and restaurants, in particular, snapped back last month, adding 286,000 jobs.
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.