The numbers: The US created 379,000 new jobs in February – the biggest gain in four months – in what is likely to be a forecast of employment growth in the coming months as most people are vaccinated and the economy reopens completely.
Employment growth last month focused on companies such as restaurants, retailers, hotels and entertainment venues, as states eased restrictions on customer boundaries and public gatherings. Most other industries have added workers.
Employment was also much stronger in January than initially reported.
The US economy added its newest jobs in February in four months. Above, a sign of employment is displayed on a Target store in California.
Justin Sullivan / Getty Images
See: A visual look at how an unjust pandemic has reshaped work and home
Meanwhile, the official unemployment rate fell to 6.2% from 6.3%, although economists believe the real rate is much higher.
Federal Reserve officials set the unemployment rate closer to 10% after adjusting for pandemic distortions.
Returning to job creation in February is probably the beginning of a new major employment cycle. Warmer weather, declining coronavirus cases, rising vaccinations and another massive increase in federal incentives are likely to act as fuel for aircraft in the economy in the spring and summer, Wall Street professionals and Fed officials say.
Read: Inflation concerns have returned. Should you worry?
New job growth has easily exceeded Wall Street expectations. Economists surveyed by the Dow Jones and The Wall Street Journal had forecast 210,000 new jobs. Shares increased in premarket trading.
Read: Unemployment claims rise slightly to 745,000 after power outages in Texas
What happened: New jobs in leisure and hospitality – restaurants, hotels, casinos, theaters and the like – rose by 355,000 last month to account for most of February’s employment.
These companies lost more than 500,000 jobs in December and January after coronavirus cases increased and the weather became cold.
Employment is likely to return even stronger in the coming months, as the weather warms and Americans have fallen more confident traveling, dining, going to a game or visiting a museum or amusement park.
Professional firms also added 63,000 employees – although most were temporary – while healthcare providers and retailers held more than 40,000 jobs. Manufacturers have participated in 21,000 new jobs
Read: Manufacturers are growing rapidly since the pandemic
Construction jobs fell by a staggering 61,000, even as companies are desperately looking to hire. The bad weather last month was the main culprit.
Home sales rose during the pandemic, but builders are facing a shortage of skilled workers, who probably won’t relax even if the pandemic does.
State and local governments also lost 86,000 jobs last month, mostly in education, but the decline is likely to reflect seasonal pandemic-related distortions. Private sector employment rose 465,000 even stronger in February, when the government was ousted.
Meanwhile, a small 50,000 people joined the workforce in February, but that still means about 4.2 million people disappeared during the pandemic. These people are no longer included in the official unemployment rate, which makes it artificially low.
The number of jobs created in January was suddenly revised to 166,000 from 49,000. However, the decline in employment in December rose to 306,000 from 227,000.
The whole picture: The economy is ready to start growing again after a hard winter – if coronavirus vaccines prove to be very effective.
An effective vaccine will allow states to remove all restrictions, let Americans live their lives again without fear for their safety, and give companies the incentive to hire. A new government financial aid will only contribute to the growing momentum.
What are they saying? “With the distribution of vaccines continuing to accelerate and the economy in the early stages of reopening, the coming months should have solid gains,” said Chief Economist Curt Long of the National Association of Federal Secured Credit Unions.
“The engine of the economic recovery is restarting as the winter wave of the pandemic recedes, although there is still a long way to go,” said senior economist Daniel Zhao of Glassdoor. “The economy is expected to add nearly 1 million jobs a month for the rest of 2021 to return to pre-crisis levels by the end of the year.”
Market reaction: Dow Jones Industrial Average DJIA,
and S&P 500 SPX,
they were open above in Friday trades.