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February jobs report stronger than anticipated; NAFCU expects robust gains in coming months
The Bureau of Labor Statistics revealed non-farm payrolls increased by 379,000 in February, with the unemployment rate dipping to 6.2 percent. NAFCU Chief Economist and Vice President of Research Curt Long analyzed the report in a new NAFCU Macro Data Flash report. Long's commentary on the report was also featured in MarketWatch and the New York Post.
Of note, the January non-farm payrolls rate was significantly revised up to a gain of 166,000.
“The February jobs report was stronger than anticipated, thanks to a spike in restaurant employment,” said Long. “Private payrolls grew by 465,000, and restaurants accounted for over 60 percent of that total.
“With vaccine distribution continuing to accelerate and with the economy in the initial stages of a reopening, the coming months should see robust gains,” added Long.
Average hourly earnings rose 7 cents in February, with year-over-year growth reaching 5.3 percent. The labor force participation rate was unchanged at 61.4 percent, significantly down from 63.3 percent in February of 2020.
Results among the major industries were generally positive. Leisure and hospitality gained 355,000 jobs, followed by temporary jobs in the professional and business services space (+53,000), the health care and social assistance sector (+46,000). Local and state government education shed 69,000 jobs while construction lost 61,000 jobs.