Tag: Economics

The unemployment changed little in February 2021, but job growth was stronger than any month since October.

The Bureau of Labor Statistics, part of the United States Department of Labor, reported the closely-followed jobs number rose in February 2021 by 379,000 jobs from the prior month. The unemployment rate was “little changed at 6.2 percent.” Compared to the economy before the onset of the pandemic, BLS wrote: “Both the unemployment rate, at 6.2 percent, and the number of unemployed persons, at 10.0 million, changed little in February. Although both measures are much lower than their April 2020 highs, they remain well above their pre-pandemic levels in February 2020 (3.5 percent and 5.7 million, respectively).”

The summary report from BLS may be found here.

Of note: BLS revised recent figures, which it does as more data becomes available. After revision, the job loss in December is 79,000, but the January figure was revised up by 117,000.

In its reporting, the Wall Street Journal wrote, “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. … 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.” See February Hiring Sets Up Stronger Spring Recovery .

Axios reported: “Good news for your Friday: the economy added a whopping 379,000 jobs in February — far outpacing expectations. Why it matters: Virus cases eased in recent weeks and states lifted restrictions, helping fuel a hiring surge. It’s proof of how much control the pandemic has over the job market. The clearest signal: The bounce-back was largely driven by hiring in the leisure and hospitality sectors, which came even in the dead of winter.” See Vaccine dreams juice jobs report .

In an opinion piece in the Washington Post, Catherine Rampell wrote: “Yay for a strong jobs report, finally! And yet: No way, no how, should this news let Congress off the hook for more stimulus, whatever Republicans might say today.

Employers added 379,000 jobs in February, the Bureau of Labor Statistics reported Friday. That was the fastest pace of hirings since October, and more gains than had been expected. Most of the hiring came in the struggling leisure and hospitality sector (primarily at restaurants and bars). The unemployment rate also ticked down, to 6.2 percent from 6.3 percent in January. This decline happened for the “right” reasons: that is, because more people got jobs, not because more people gave up looking for work and stopped being counted as unemployed. ” See Opinion: February’s jobs report doesn’t let Congress off the hook for more stimulus .

My interactive visualization is updated with this data and is available here.

The unemployment rate fell in January 2021, but job growth was weak, and the December value was revised.

The Bureau of Labor Statistics, part of the United States Department of Labor, reported the closely-followed jobs number rose in January 2021 by 49,000 jobs from the prior month. The unemployment rate fell from 6.7 percent to 6.4 percent. BLS notes that the total nonfarm employment level is “below its February 2020 level by 9.9 million, or 6.5 percent.”

The summary report from BLS may be found here.

Of note: BLS revised recent figures, which it does as more data becomes available. After the revision, the job loss in December is 227,000 instead of the previously reported 140,000

In its reporting, the Wall Street Journal wrote, “The unemployment rate decline in January was driven by two factors. More people dropped out of the labor force—meaning they weren’t actively looking for a job and may have grown frustrated with their employment prospects. Also, the number of people reporting themselves as employed increased, consistent with a generally upward trend in hiring since last spring.”

It added: The broader economic recovery stalled significantly this winter. Unemployment claims, a proxy for layoffs, have remained above pre-pandemic levels. Consumers cut back on spending, as some were wary of leaving their homes as virus cases surged. Others wanted to shop and dine out, but had limited options. … Economists see the winter lull as temporary. They expect growth to pick up later this year as more people get vaccinated and business restrictions further ease. Many economists also say the economy could benefit from further government stimulus.” See U.S. Employers Added 49,000 Jobs in January, Growth returned to the labor market after one-month dip; unemployment rate fell to 6.3%.

Axios reported: “Driving the news: The economy ended the Trump years with an unemployment rate of 6.3%. That’s a lot lower than the pandemic-induced high point of 14.8% in April, but still well above the 4.7% unemployment that Barack Obama left behind. Why it matters: Former President Trump inherited a flourishing labor market. He’s handing President Biden one that has a ways to go before recovering from an unprecedented shock. … By the numbers: When Trump took office, the economy had 145.6 million jobs. The legacy he leaves Biden, as measured during the week of Jan. 11: 3 million fewer jobs, and a labor force of 160 million people that’s 4.5 million people smaller than it was four years ago.” See The Trump-COVID jobs legacy.

In an opinion piece in the Washington Post, Catherine Rampell wrote: “Well, at least we didn’t lose jobs last month, as was the case in December. But job growth in January — at an anemic 49,000 net payroll jobs — was still much slower than it was pre-pandemic. Which doesn’t do much to help us recover the 22 million jobs lost in early spring. (more…)