The US job market surprised economists with its strength once again, adding more than 300,000 jobs in March, with a few key sectors continuing to fuel its growth.
Health care and social assistance was the top sector in terms of job gains – a common theme in recent years – adding 81,300 jobs. Government and leisure and hospitality were the next strongest sectors, and together these two major groups accounted for more than 60% of March's gains.
In health care, ambulatory services and hospitals combined added 55,000 jobs, according to the Bureau of Labor Statistics. Local government was another strong employment subgroup, growing by 49,000 jobs.
Notably, the leisure and hospitality sector has now returned to its pre-pandemic employment level, according to the Bureau of Labor Statistics. Employment in this area, which includes bars and restaurants, declined significantly in 2020 when many of these establishments closed for health reasons.
The continued recovery of these jobs, coupled with strong months for sectors such as construction, may be a sign that immigration is helping the labor market grow without putting significant upward pressure on wages. The Bureau of Labor Statistics noted that labor force participation changed little last year despite continued upward surprises for job gains.
“Last year, half of the growth in the labor force came from net immigration. There were 5.2 million additional jobs last year, thanks to net immigration. It's been key to rebalancing the labor market. It's a big part of the reason we're doing this.” “We've had the growth we've had and the contraction we've had,” Stephanie Kelton, a professor at Stony Brook University, said Friday on Squawk Box.
