- Leisure and hospitality has always been one of the strongest sectors as the US economy recovered from the peak of the Covid-19 pandemic.
- Restaurants and bars accounted for 70,000 job creations last month.
- However, the sector is still 2.4% below its pre-pandemic employment level, according to the Labor Department.
The US labor market surprised on the upside again in February, fueled by continued strength in the service sectors of the economy.
The recreation and hospitality sector added 105,000 jobs last month, according to the Labor Department, which is about a third of the total gain of 311,000 jobs.
The health care and social assistance segment was another major contributor, adding nearly 63,000 jobs.
Leisure and hospitality has consistently been one of the strongest sectors as the US economy recovered from the peak of the Covid-19 pandemic, which saw bars and restaurants close in large numbers across the country. Catering companies accounted for 70,000 job creations last month.
However, the sector is still 2.4% below its pre-pandemic employment level, according to the Labor Department.
“We’re still short,” said Steve Rick, chief economist for CUNA Mutual Group. “We still don’t have the same number of people working in hotels and restaurants as we did in 2019. That’s why we’re still adding jobs at a fairly feverish pace in those areas.”
However, there are some weaknesses in other sectors of the economy. The drop of 25,000 jobs in information technology shows the impact of layoffs at tech companies, while jobs in transportation and manufacturing also fell.
Transportation and warehousing jobs are now down 42,000 since October, according to the Labor Department.
“We are seeing a bifurcation of the economy between the goods sector and the service sector,” Rick said.