DE | Weekly | Global Markets | A Closer Look at the U.S. Labor Market and a Bright Prospect – 04/11/21

Posted April 12, 2021 by Diane Buscemi

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A Closer Look at the U.S. Labor Market and a Bright Prospect
Rohan Kumar and Allen Sinai

Employment Report Highlights Strong Growth
U.S. Nonfarm Payrolls rose for the third consecutive month in March and showed strength across-the-board, 916,000 in total; 780,000 for the Private Sector. The Unemployment Rate dropped a lot, too, to 6% from 6.2% with increases both in the Labor Force and in Persons finding work. The DE forecast was 65K above the Consensus figure, yet actual growth topped even DE’s prediction.

Jobs showed the biggest monthly increase since August 2020.

Leisure and Hospitality recorded the largest gain, fueled by Reopenings for many in-person activities. Aside from this Industry, jobs growth was widespread – supporting a more balanced Recovery.

Still Ample Room to Grow
Total Nonfarm Payrolls are down 5.5% compared with the peak in February 2020. Leisure and Hospitality jobs losses have led the decline since then, down 18.5% with Food Services and Drinking Places down 14.7%.

Some Deep Diving Into the Details of the BLS Report
There was evidence of reentry into the labor market by those who had previously dropped out.

The Labor Force Participation Rate (LFPR) rose to 61.5% from 61.4%, and there was a 347K increase in the Labor Force. The Employment-Population Ratio went to 57.8% from 57.6%, a good sign.

The rise in Private Payrolls was up a lot after a revised 558K rise last month.

Employment in the Goods Sector increased 183K following a 44K fall. Manufacturing tallied a 53K gain. Employment rose 110K in Construction on far better weather.

Private Services Employment grew 597K after a 602K rise; for the two months a huge increase.

Leisure and Hospitality Employment increased 280K following a 384K rise. Payrolls grew 175.8K for Food Services and Drinking Places and increased 40.1K for Accommodations.

Education and Health Services notched a 101K rise following a 57K gain. Professional and Business Services experienced a 66K increase after a 78K rise.

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