US Economy Sees 379,000 New Jobs in February

The US economy continues its upwards momentum in February as the national unemployment rate falls from 6.3% to 6.2% in February of 2021. 

The total nonfarm employment in the nation surged by 379,000 jobs, according to data released by the US Bureau of Labor Statistics. 

Of the 15 major industry groups, nine of them are reporting job gains for February. Of the bunch, Leisure & Hospitality led with 355,000 new jobs with Temporary Help following behind with a net increase of 52,700. 

The government sector had the largest decline in employment for the month as it reported a loss of 86,000 jobs following reductions made around government-run schools. 

Despite the promising increase in employment, the US still has a way to go before it begins to see numbers that line up with the country’s data pre-covid. All 15 industries are still down year-over-year, although Treasury Secretary Janet Yellen is hopeful to see a return to employment normality in 2022. 

Treasury Secretary Expects $1.9T Stimulus Package to Allow 2022 Return to Full Employment

In an interview with MSNBC, US Treasury Secretary Janet Yellen said, “I’m anticipating, if all goes well, that our economy will be back to full employment, where we were before the pandemic, next year.”

This statement comes in contrast to predictions made by the Congressional Budget Office, which stated that, without legislation, it wouldn’t be until 2024 that the country sees a recovery in the labor market. 

However, not everyone is as hopeful as Ms. Yellen. There are some economists who believe the $1.9 trillion stimulus package is going to be disastrous for the economy. The belief is that the increase in spending is going to result in a rapid escalation of inflation and interest rates, an opinion which Ms. Yellen does not agree with, “I really don’t think that’s going to happen. We had a three-and-a-half percent unemployment rate before the pandemic, and there was no sign of inflation increasing.”

Regardless of which side of the fence you fall on, there’s little doubt that the long-awaited news of a Covid stimulus package is met with relief from Americans around the country. 

Decrease in Unemployment and Covid-Relief Package Bring Hope 

The decrease in the national unemployment rate followed by news of the Covid-relief package has brought about a wave of hope for the American economy. 

Barry Asin, the President of SIA, is quoted as saying, “The recent trends in the temporary employment sector are consistent with the beginning of an economic expansion.” Mr. Asin believes that there are favorable GDP projections for Q1 2021, which are indicative of a faster recovery path than previously believed. 

The United States is quickly becoming the Western leader in Covid economic recovery, which has come as a surprise to many economists. 

However, it remains to be seen is whether or not the distribution of the Covid-relief package is going to have a negative long-term effect on the growth of the economy. 

A sudden rise in inflation could be a disastrous and sudden end to America’s recovery. However, there is little doubt that it is going to benefit countless American families in the short term. 

All that can really be adopted right now is a wait-and-see attitude. The future of the global economy, much less the American economy, is questionable. The pandemic has resulted in a shakeup that came about during a time where we already saw a cataclysmic shift from fiat to digital currency, so the lasting implications of the timing of Covid-19 remain to be seen.