Job growth in February may signal start of a hiring boom as the economy reopens
February’s surprisingly strong job growth signals that the economy could be at a pivot point and is about to enter a hiring boom.
The economy added 379,000 jobs, well above the 210,000 expected, with most of them in leisure and hospitality, the sector hardest hit when the economy abruptly shut down a year ago.
Economists say it would not be surprising to see multiple months now of job growth of at least 500,000.
Stock futures surged on the report, and bond yields jumped. The 10-year Treasury yield, which moves opposite price, returned to a recent high of 1.61%, before falling back to about 1.57%. The 10-year started the year just above 0.9%.
Stimulus package effects
To Swonk, the February data shows that the stimulus package approved in December was necessary to drag the economy out of a trough.
Job losses in December were revised to 306,000 from 227,000. January’s gains were revised to 166,000 from 49,000. Individuals received $600 stimulus checks in the first days of January.
Swonk said the economy is still down by 9.5 million jobs.
Reference: CNBC
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