The US labor market surprised to the upside again in February, powered by continued strength in the service sectors of the economy.
The leisure and hospitality sector added 105,000 jobs last month, according to the Labor Department, accounting for about a third of the 311,000 total employment.
The health care and social support sector made the biggest contribution, adding almost 63,000 jobs.
Leisure and hospitality has consistently been one of the strongest sectors as the US economy has recovered from the peak of the Covid-19 pandemic, which saw bars and restaurants close there large numbers across the country. Food and beverage industries reported 70,000 job gains last month.
However, the sector is still 2.4% below its pre-pandemic employment rate, according to the Department of Labor.
“We’re still short,” said Steve Rick, chief economist for CUNA Mutual Group. “We still don’t have the same amount of people working in hotels and restaurants as we did in 2019. So that’s why we’re still adding jobs at a very feverish pace in those areas.”
However, there are some weaknesses in other parts of the economy. The decline of 25,000 jobs in information technology shows the impact of layoffs at tech companies, while transportation and manufacturing jobs also declined.
Transportation and warehouse jobs are now down 42,000 from October, according to the Labor Department.
“We are seeing a shift in the economy between the goods and services sector,” said Rick.
