U.S. jobs market gains momentum in February

U.S. jobs increased more than expected in February amid falling new COVID-19 cases, quickening vaccination rates and additional pandemic relief money from the government, putting the labor market recovery back on firmer footing and on course for further gains in the months ahead.

Fred Katayama reports.

The U.S. jobs market regained steam in February.

The Labor Department reported Friday that employers added 379,000 people to their payrolls, more than double what economists were expecting.

What’s more, January’s modest gains were revised sharply upward.

Jobs increased amid falling COVID-19 cases, rising vaccination rates and more relief money from the government.

That puts the economy on course for further gains in the months ahead.

The sector that was among the hardest hit by the pandemic accounted for most of the job gains in February.

The leisure and hospitality sector added 355,000 jobs as restrictions eased in some parts of the country.

Most of those gains came from restaurants and bars.

Among the biggest losers of jobs: the construction industry, which may have been hurt by the severe winter weather that slammed much of the U.S. The report also offered a reminder that the recovery remains excruciatingly slow.

Millions of Americans experienced long periods of joblessness.

The unemployment rate ticked lower to 6.2% last month.

But that rate is understated because people misclassify themselves as being “employed but absent from work.” Looking ahead, economists forecast the labor market will gather steam in the spring and through summer.

President Joe Biden’s $1.9 trillion recovery plan now being considered by Congress could also boost hiring.