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Livesquawk - US Reports Strong Rise In Job Creation As People Return To Work
US Reports Strong Rise In Job Creation As People Return To Work
Job creation in manufacturing lagged behind the service sector.

- Rise in non-farm payrolls is highest in seven months

- Jobless rate falls as forecast

- Low wage positions return

 

By Eric Culp, European Editor

LiveSquawk News

@EricCulpLS

 

2 April 2021 | 14:45 GMT

 

US job creation was stronger than expected in March and the decline in unemployment matched forecasts as evidence for the strength of the recovery piles up during the reopening of America.

 

The US Labor Department said non-farm payrolls in March surged by 916,000, which handily beat market expectations of 650,000 and last month’s upwardly revised 468,000 figure. The unemployment rate fell to 6.0%, which was in-line with forecasts.

 

Equity futures moved higher even though stock markets were closed for the Good Friday holiday. US bond yields also rose on the news, with the 10-year pushing past 1.70%. The euro spiked briefly against the greenback before losing ground.

 

More than half a million of the new jobs were in the service sector, with only 53,000 coming in the manufacturing sector, according to the report. The department upwardly revised both the January and February numbers, which added a total of 156,000 jobs not previously reported.

 

Average earnings declined slightly in March, an indication that lower-income jobs are returning, according to analysts.

 

Fewer people said they were unemployed due to the pandemic, the department noted. “In March, 11.4 million persons reported that they had been unable to work because their employer closed or lost business due to the pandemic--that is, they did not work at all or worked fewer hours at some point in the last four weeks due to the pandemic. This measure is down from 13.3 million in the previous month.”

 

Deutsche Bank Chief International Strategist Alan Ruskin told Bloomberg TV that this may be just the beginning of growth in America, noting that he expects to eventually see “the United States economy growing at a more rapid rate than China”.

 

The apparent vibrancy of the US economy heaps more pressure on the US Federal Reserve. Already feeling the need to explain how an expected upcoming rise in inflation is not enough to force higher interest rates, Fed Chairman Jerome Powell may now have to say why a rapidly improving job market will not spark more hawkish monetary policy in the months ahead.