February NFP +379,000

The February jobs report is out. The U.S. economy created 379,000 net new jobs last month. Expectations were for 210,000.

In the last year, NFP is down by 9.475 million. But it’s better than it was!

The unemployment rate ticked down to 6.2%. The unemployment rate is now lower than its peak in the 2003 recession. January was revised up to 166,000. The U-6 rate was 11.1%. The labor force participation rate was 61.4%. Bars and restaurants accounted for 75% of the job gains last month.

The Labor Force Participation Rate has been very stable over the last nine months. Mostly 61.4% or so.

Nearly all the job gains came from the battered leisure and hospitality sector, which saw an increase of 355,000 amid a relaxation of dining restrictions in some areas. Bars and restaurants gained 286,000 jobs while hotel-related hiring totaled 36,000 and amusement, gambling and recreation businesses added 33,000.

Despite the gain, the industry is still 3.5 million short of its employment level from a year ago, just before the worst of the pandemic.

Stock market futures rose sharply following the report, with the Dow industrials pinting to a 235-point gain at the open. Government bond yields also were higher.

Friday’s report showed that hiring also was stronger in January than initially indicated, with that month’s tally revised up to 166,000 from 49,000. However, December’s count was revised lower from a los of 227,000 to a drop of 306,000.

Health care jobs in February rose 46,000 while retail added 41,000. Manufacturing also posted a 21,000 increase.

Here are nonfarm payrolls:

Posted by on March 5th, 2021 at 8:32 am


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