Photo: Jason Goodman
The United States finally sees some relief in the form of job growth.
The US economy is on a roll, giving millions of people hope for the future. Last month, 678,000 new jobs were created as activities kept bouncing back after being stagnant earlier this year. The unemployment rate also declined to 3 .8%.
The sectors that caused the gains were leisure and hospitality, professional and business services, health care, and construction; therefore, job growth was extensive. At least 400,000 new roles were added, way beyond analysts’ estimated new job amount.
The number of new jobs released by companies in January has been revised upward, indicating more positions available than what was thought previously. In addition, over the past 12 months alone, the average hourly rate soared 5.1%, even though that is under the 5.7% annual growth in January.
With the numbers growing, it is clear that there are many opportunities for those looking to get into the industry. The majority of these came from leisure and hospitality, which provides 179,000 new roles and bar and restaurant companies with 124,000 jobs. While in February, the professional and business services employment grew by 95,000 jobs.
However, the overall number of jobs on US payrolls indicates 2.1 million pre-pandemic.
The recent drastic-than-expected increase in the jobs market has pulled up the possibility that the US central bank will increase interest rates at its next conference. A move that the US Federal Reserve Chairman approves.
Premier Miton Investors’ chief investment officer Neil Birrell said, “It looks like rates up by 0.25 basis points will be coming this month, as noted by Powell yesterday. The outlook is too uncertain for more than that.”
An interest rate in the US was “all but baked in” to assist in regulating surging inflation rates, said chief strategist at Principal Global Investors, Seema Shah.