US labour market claws back sharply after months of lull; non-farm payrolls surge

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US labour market claws back sharply after months of lull; non-farm payrolls surge

The US Labour Department’s closely monitored employment report had unveiled on Friday that a US economy what has been gradually gathering momentum over the recent past, added more jobs than anticipated last month as a sharp drop in new pandemic cases in context of a mass-scale rollout of pandemic vaccination campaign coupled with a roughly $892 billion in additional pandemic relief aid from the Government had buoyed up hiring in restaurants alongside other service sectors, paving ways for an ailing labour market to get back on track.

Nonetheless, US Labour Department’s employment report released earlier on the day had also revealed that at least 4.1 million Americans had been without a job for more than six months, while another 3.5 million had permanently lost their jobs during the peak of pandemic outbreak last year, though, since hiring regained pace and public confidence seemed to be restoring after vaccine rollout, US unemployment rate fell to 6.2 per cent last month from a 6.3 per cent recorded in January this year.

However, following release of Friday’s employment data, several analysts were quoted saying that the labour market might take several years to reach a pre-pandemic size despite an acceleration in job growth momentum alongside more fiscal stimulus over the coming months.

US non-farm payrolls surge

Apart from that, latest US Labour Department’s employment report came forth a day after non-farm payrolls data had suggested that the US employers had added 379,000 jobs last month, well above an approximated 166,000 jobs added in January, while US economy had reportedly recovered about 12.7 million jobs out of 22.2 million lost on the meadows of pandemic upheavals.

Meanwhile, voicing a strident tone over further upside momentum ahead in US labour market, an economist at Morgan Stanley in New York, Robert Rosener, said, “There remains easy fuel for strong payroll gains in coming months as the reopening gains momentum.

But there is much further to go before conditions are consistent with maximum employment.