Vaccine rollout gives a big boost to US jobs

Jobs growth has surged as President Joe Biden speeds up vaccinations. Jonathan Ernst/Reuters

Lucia Mutikani

April 03 2021 02:00 AM

The US economy created the most jobs in seven months in March as more Americans got vaccinated and the government doled out additional pandemic relief money, marking the start of what could be the strongest economic performance in decades.

The Labor Department’s closely watched employment report yesterday suggested the jobs market has finally turned the corner after hitting a ditch in December. All industries added jobs last month and more people rejoined the labour force.

“The economy is roaring back to life,” said Brian Bethune, professor of practice at Boston College.

Nonfarm payrolls surged by 916,000 jobs last month, the biggest gain since last August. Data for February was revised higher to show 468,000 jobs created instead of the previously reported 379,000.

Economists polled by Reuters had forecast payrolls increasing by 647,000 jobs in March.

Job gains last month were led by the leisure and hospitality sector, where employers hired 280,000 workers.

Restaurants and bars accounted for nearly two-thirds of the industry’s employment gains. Construction employment rebounded by 110,000 jobs after being depressed by harsh weather in February.

Public and private education payrolls also increased as more schools resumed in-person learning and other school-related activities.

As of Tuesday morning, the United States had administered 147.6 million doses of Covid-19 vaccines in the country and distributed 189.5 million doses, according to the US Centers for Disease Control and Prevention.

The White House’s massive $1.9trn (€1.62trn) pandemic relief package approved in March is sending additional $1,400 cheques to qualified households and fresh funding for businesses.

Economists expect job growth will average at least 700,000 per month in the second and third quarters. That, combined with the fiscal stimulus and about $19trn (€16.2trn) in excess savings accumulated by households during the pandemic, is expected to unleash a powerful wave of pent-up demand.

First-quarter gross domestic product estimates are as high as an annualised rate of 10.0pc. Growth this year could top 7pc, the fastest since 1984.

Reuters