Is the country about to embark on an employment boom?
After seeing the unexpectedly good February jobs report, economists are hoping it’s a sign of things to come throughout the United States. In case you missed it when the February report was released last week, the numbers were surprisingly strong. Specifically, the economy added nearly 380,000 jobs, when most projected a gain of only about 210,000. What’s more is that many of these job gains were in some of the most hard-hit industries, such as leisure and hospitality — an even more encouraging sign that brighter days are ahead of us all.
What’s next? Economists hope it’s the start of a hiring boom throughout the United States and that we’ll see monthly jobs reports into the spring of at least 500,000 added each of the next few months. And this jobs report usually has a nice trickle-down effect on other aspects of the economy too. For instance, when the report was released, stock future surged and the 10-year yield also climbed.
Things are Trending the Right Way
All throughout the pandemic thus far, there have been two lines of thinking as it relates to the economy. There have been those who resist shutting it down, instead hoping to enact common-sense measures to reduce risk to keep most — if not all — activity open. And then there are those who believe the only way to jumpstart the economy is to get control of the coronavirus and fully re-engage.
And while there’s certainly something to be said for doing what’s necessary to maintain some level of economic activity, the fact that numbers have significantly decreased since the December 2020 surge coupled with vaccinations picking up and protecting Americans from infection, it’s fairly easy to see the reason for the growth in jobs and in economic activity.
As the pandemic starts to subside and become more under control, even the hard-hit industries are starting to open back up to at least some extent. With numbers trending down and vaccine distribution trending up, there’s hope that things continue on this economic trajectory. Economists had feared a double-dip recession, and that seems all the more unlikely based on this news.
Like we noted earlier, economists hope these positive February job gains are just the beginning. The hope is that job gains are in the 500,000 range in the next few months and the economy continues to grow as vaccines become more prevalent. In fact, economists expect the economy to grow by about 6 percent this year. That might not seem like a ton of growth, but when you consider everything that was lost in the year since the pandemic engulfed the United States, it’s nothing but positive news.