The U.S. economy is set up for a stronger recovery this spring after a February surge in hiring at restaurants and other hospitality businesses created the best monthly job growth since last fall. Employers added 379,000 jobs in February and January gains were revised higher to 166,000 jobs, the Labor Department said Friday. The pickup comes after employers cut jobs late last year. Change in payrolls since February 2020Source: Labor DepartmentNote: Seasonally adjusted

The unemployment rate, determined by a separate survey, ticked down to 6.2% last month. The rate is well below a near 15% pandemic peak in April 2020, but remains above 2019’s 50-year lows. Overall, the U.S. has 9.5 million fewer jobs than a year earlier, just before the coronavirus pandemic took hold in much of the country.

U.S. stocks gained on Friday afternoon in a wild trading session that followed the employment report’s release, while government-bond yields extend a recent surge. In February, most of the job gains occurred in the leisure and hospitality sector, which includes restaurants, adding 355,000 jobs. There were smaller increases in temporary help services, manufacturing and healthcare.

The gains reflect reduced business restrictions, more people receiving vaccines, a lower level of Covid-19 infections and a recent round of government aid to households and businesses, which boosted consumer spending early this year.

Posted in: USA