The strength of the U.S. labor market once again surprised economists, with more than 300,000 new jobs added in March, with several key industries continuing to drive growth.
Health care and social assistance were the areas with the most job growth – a common theme in recent years – adding 81,300 jobs. Government and leisure and hospitality were the next two strongest sectors, with these top sectors collectively accounting for more than 60% of March’s gains.
Health care, outpatient services and hospitals added a combined 55,000 jobs, according to the Bureau of Labor Statistics. Local government was another strong recruiting group, adding 49,000 jobs.
Notably, the leisure and hospitality industry is now back to pre-pandemic employment levels, according to the Bureau of Labor Statistics. Employment in the area, including bars and restaurants, fell sharply in 2020 as many such establishments closed due to health concerns.
The continued rebound in these jobs, coupled with strong performance in industries such as construction, may suggest that immigrants are helping the labor market grow without putting too much upward pressure on wages. The U.S. Bureau of Labor Statistics noted that while job growth continued to surprise, the labor force participation rate changed little over the past year.
“Last year, half of the growth in the labor force came from net migration. Because of net migration, 5.2 million new jobs were created last year. This is key to rebalancing the labor market. That’s what we’re talking about,” Stony Brook University professor Stephanie Kelton said on Friday. “We’ve had economic growth and deflation,” he said on “Squawk Box.” “
