The U.S. economy added about 678,000 jobs in February and the unemployment rate edged down to 3.8%, according to the U.S. Bureau of Labor Statistics.
Job growth was widespread, led by gains in leisure and hospitality, professional and business services, health care, and construction.
The total number of unemployed persons edged down to 6.3 million. In February 2020, prior to the coronavirus (COVID-19) pandemic, the unemployment rate was 3.5% and the number of unemployed persons was 5.7 million.
The labor force participation rate was little changed at 62.3%.
Wages continued to increase and reached an average rate of $31.58 per hour.
Over the past 12 months, average hourly earnings have increased by 5.1%.
In February, average hourly earnings of private-sector production and nonsupervisory employees rose by 8 cents to $26.94.
“Non-farm payrolls grew by a strong 678,000 in February. That means that over 90 percent of the jobs lost at the start of the pandemic have been recouped,” says Odeta Kushi, deputy chief economist for First American, in a statement. “If monthly gains continue at this pace of 678,000, we could return to the pre-COVID employment peak by June 2022.”
Kushi says although the labor participation rate increased slightly it “remains just over a percentage point below the pre-pandemic level.”
“We want the unemployment rate to be low and the participation rate high to call a labor market healthy,” Kushi says.
”December’s JOLTS report showed job openings exceeded total hires by 4.66 million, a record high and an indication that demand for workers continues to outpace supply,” she says. “This imbalance puts upward pressure on wages. Average hourly earnings for production and non-supplemental workers is up 6.7% year-over-year.”
A bright spot in this month’s jobs report is the increase in construction jobs, which jumped 60,000.
“Focusing on the construction industry, we can’t build more homes without more hammers at work! This was a strong month for construction,” Kushi says. “Construction added 60,000 jobs in February. About three-fourths of the month-over-month construction job gains occurred in specialty trade contractors.”
“Residential building construction employment rose by 6,700 in February,” she adds. “The rise is positive news for an industry that has been grappling with chronic labor shortages. We need more homes built and, in such a labor-intensive industry, you need more workers to build more homes.”
Kushi further notes that “average hourly earnings in construction are up 6 percent on a year-over-year basis in February, the fastest pace since 1982.”
Photo: Saulo Mohana
