The numbers: The U.S. created 379,000 new jobs in February – the biggest gain in four months – which is likely to be a foretaste of the rise in rents in the coming months, as most people are vaccinated and the economy reopens.
The increase in rent last month was concentrated on businesses such as restaurants, retailers, hotels and entertainment venues, as states eased restrictions on the limit of customers and public gatherings. Most other industries also added workers.
Leasing was also much stronger in January than initially reported.
The U.S. economy added the most new jobs in February in four months. Above is a rental sign displayed in a Target store in California.
Justin Sullivan / Getty Images
See: A visual look at how an unfair pandemic has changed work and home
The official unemployment rate has meanwhile declined to 6.2% from 6.3%, although economists widely believe that the real rate is much higher.
Federal Reserve officials set the unemployment rate at closer to 10% after adjusting the data for distortions caused by the pandemic.
The boom in job creation in February is likely to be the start of a major new job cycle. Warmer weather, cases of coronavirus, rising vaccinations and another massive increase in federal stimulus are likely to serve as jet fuel for the economy in the spring and summer, Wall Street front and Fed officials say.
Read: Inflation concerns are back. Do you have to worry?
The increase in new jobs easily exceeded Wall Street expectations. Economists polled by Dow Jones and The Wall Street Journal predicted 210,000 new jobs. The shares rose in pre-trading.
Read: Unemployment claims rise slightly to 745,000 after power outages in Texas
What happened: New jobs in leisure and hospitality – restaurants, hotels, casinos, theaters and so on – increased by 355,000 last month to offset most of the rentals in February.
These companies lost more than 500,000 jobs in December and January after coronavirus effects reached a crescendo and the weather became cold.
Rents are likely to return even more strongly in the coming months as the weather warms and Americans become more confident about traveling, eating out, going to a game or visiting a museum or amusement park.
Professional businesses also added 63,000 employees – although most were temporary – while healthcare providers and retailers both filled 40,000 plus jobs. Manufacturers move in with 21,000 new jobs
Read: Manufacturers grow at the fastest rate since the pandemic
Employment in construction fell by a surprising 61,000, although companies are desperately trying to hire. Bad weather last month was the biggest culprit.
Home sales rose during the pandemic, but builders face a shortage of skilled workers, which is unlikely to ease even if the pandemic does.
State and local governments also shrugged off 86,000 jobs last month, mostly in education, but the decline is likely to reflect the seasonal distortion linked to the pandemic. Leasing of the private sector rose by 465,000 in February when the government was excluded.
In February, a petty 50,000 people rejoined the workforce, but that still means about 4.2 million people went missing during the pandemic. Those people are no longer counted in the official unemployment rate, which makes them artificially low.
The number of jobs created in January was sharply adjusted to 166,000, from 49,000. However, the decline in employment in December increased from 227,000 to 306,000.
The whole picture: The economy plans to start growing again with racial strides after a difficult winter – if the coronavirus vaccines prove to be very effective.
An effective vaccine will enable states to lift all restrictions, get Americans back to work without fearing for their safety, and give businesses the incentive to hire. Fresh financial state aid will only increase the growing momentum.
What are they saying? “With the proliferation of vaccines accelerating and the economy in the early stages of reopening, the coming months will bring strong gains,” said chief economist Curt Long of the National Association of Federally Insurance Credit Unions.
“The engine of economic recovery is starting again as the winter wave of the pandemic subsides, although there is still a long way to go,” said senior economist Daniel Zhao of Glassdoor. “For the rest of 2021, the economy will have to add nearly 1 million jobs a month to return to pre – crisis levels by the end of the year.”
Market reaction: The Dow Jones Industrial Average DJIA,
and S&P 500 SPX,
would open higher in Friday trades.