The unemployment rate is lower than at any time during the pandemic, but economists urge caution

The surge in employment numbers comes one year after the pandemic cast the US economy into an economic crisis. This new development may be a sign that the crisis is finally coming to an end.

In March, employers in the United States added some 916,000 jobs. According to the Labor Department, this number is double that added in February, causing the unemployment rate to fall to around 6% – the lowest unemployment level since the pandemic began.

With vaccinations accelerating, businesses reopening and an influx of financial aid, experts say that there is a possibility that there will be an upward trend in the employment rate moving forward.

The surge in employment numbers comes one year after the pandemic cast the US economy into an economic crisis. This new development may be a sign that the crisis is finally coming to an end.

Following several slow months in the labor sector that saw employers putting a halt on hiring in a bid to sustain themselves during the pandemic, many are relieved that the end may at last be in sight.

At a speech at the White House, President Joe Biden acknowledged the report as proof that both his economic initiatives are effective and bearing positive results.

“My message to the American people is this," Biden said. “Help is here. Opportunity is coming. And at long last, there’s hope for so many families."

President Biden said the report was a stark reminder of the economic hole that the pandemic has opened under the economy.

Despite the positive results in March, the US still has roughly 8.4 million fewer jobs than it did in February 2020. According to reports, even if employers hired rapidly and at the same pace that they did in March, it would still take a long time to bridge that gap because of the number of job losses, the waves of coronavirus infections and the small business closures that resulted over the course of the pandemic. Additionally, reports state that if there is an increase in coronavirus cases, the economy’s recovery could be significantly impeded.

Long-term unemployment remains a serious issue in the country as millions of those who lost their jobs early on in the pandemic are still out of work over one year later. Studies have shown that people who are out of the labor market for over six months usually have a more challenging time getting employed in new positions.

Currently, the number of people who have been unemployed for more than six months remains at a high of 4.2 million – an increase of more than 3.1 million from when the pandemic began.

Because of the introduction of vaccines, some economists are hopeful that a repeat of the surge in COVID-19 case numbers that took place during the winter in the US won’t take place.

According to reports, over one-quarter of US adults have received at least one dose of the COVID-19 vaccine with over three million additional doses being administered each day. Economists hope that with these positive vaccine numbers will lead to a return to a sense of economic stability in the nation.

The number of jobs added in March was pretty evenly distributed across various industries. The hospitality industry, for example, added over 280,000 jobs as Americans returned to restaurants and resorts in increased numbers. Also in March, the construction business added around 110,000 jobs and schools added about 190,000 jobs.

The increase in job numbers has led to newfound confidence in businesses across the country. While many of those jobs added at the beginning of 2021 were temporary positions, temporary staffing levels were down in March, indicating that many employers were interviewing and filling more permanent roles.

Before the latest round of stimulus checks, Americans had US$1.3 trillion more in savings than they had before the pandemic hit – money they may have otherwise used on activities they had enjoyed before the pandemic hit, including eating out, attending concerts and shopping.

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