US employers have extensively hired, with 431,000 jobs being added in the month of March solely, indicating the economy’s resilience amidst still-destructive Covid-19 and the highest inflation seen in the last 40 years, reported the US Labor Department on Friday.
“BREAKING: America’s employers extended a streak of robust hiring in March, adding 431,000 jobs in a sign of the economy’s resilience in the face of a still-destructive pandemic and the highest inflation in 40 years,” ABC News Tweeted.
The last month’s job hiring reports indicate that the unemployment rate has been reduced to 3.6% marking the lowest level since the Covid-19 spread began two years ago.
“Although today’s job report was a little softer than expected, it still paints a picture of a steaming labor market,” said Principal Global Investors’ chief strategist, Seema Shah. “In fact, the final vestiges of COVID-19 are close to being fully eradicated from the economic data.”
Despite persistent supply obstructions, inflation surge and now the Russia-Ukraine war in Europe, US employers managed to add nearly 400,000 jobs in the market for straight 11 months.
The current inflation around the globe may affect consumer spending, the core driver of the world’s economy.
After a larger gain in consumer spending in January, the US residents expanded their spending in February by merely 0.2%.
However, the US job market seems to be recovering at an unexpected rate after the global recession due to Covid-19, with job vacancies reaching the record level and unemployment benefit applications dropping to its lowest.
The current reports from the job market are a sign that the US is reviving from the devastating recession, which wiped out roughly 22 million jobs from the market in March and April 2020. The primary reason was businesses shutting down, cutting working hours and most of the population being unemployed. The swift recovery and economic revival have been largely fueled by generous aid, extremely low borrowing driven by Federal Reserve and massive savings during the pandemic. Reportedly, the US residents have spent so rapidly that many warehouses, factories, ports and shipping companies failed to keep up with the consumer demand. The situation causes supply chains to snarl and prices to rise.