Construction, leisure & hospitality jobs rebounded in March

916K new jobs beat economists’ predictions

National /
Apr.April 02, 2021 11:15 AM
The gains accounted for nearly a third of overall job growth. (iStock)

The gains accounted for nearly a third of overall job growth. (iStock)

The leisure and hospitality industry bounced back in March, adding 280,000 jobs to the economy as hotels, restaurants and bars continued to reopen across the country.

Bars and restaurants saw the majority of job gains last month, as 175,000 individuals were brought back to work, according to the latest data from the U.S. Bureau of Labor Statistics. Hotels added back 40,000 positions.

The gains accounted for nearly a third of overall job growth, according to the bureau, which noted that March saw the largest jump in employment since last fall.

Construction also roared ahead last month with 110,000 new hirings, overcoming weather-related losses in February.

Overall, the economy added 916,000 jobs in March, beating economists’ predictions. The unemployment rate is now at 6 percent, a slight decrease from 6.2 percent in February.

“We fully expect that this pace of job gains will continue for months,” said Mike Fratantoni, chief economist of the Mortgage Bankers Association, adding that the unemployment rate could fall below 5 percent before the end of the year.

“With the job growth and bright outlook for the remainder of the year, housing demand will remain quite strong, even if mortgage rates increase above 3.5 percent, as we expect,” Fratantoni said.

The recovery, while encouraging, remains uneven; 8.4 million fewer people are employed today compared to before the pandemic, and states like New York are lagging. While U.S. job postings through mid-March were 2 percent lower than before the pandemic, New York state’s declined 13.7 percent over the same period, according to Russell Weaver, director of research at Cornell University’s School of Industrial and Labor Relations.

“Low wage workers, workers of color, and women have shouldered the largest burdens of the pandemic both in New York and throughout the nation,” said  Weaver.

About 1 percent of New York’s labor force made new unemployment insurance claims each week in March, said Weaver, approximately 1.5 times the national average.

Real estate servicers added 11,600 jobs in March. Retail added 22,500 jobs last month, about half the gains it posted in February.

The number of remote workers declined in March, down to 21 percent of the workforce from 23.2 percent in January, suggesting a return to the office will occur gradually.





    Related Articles

    arrow_forward_ios
    A photo illustration of 6 South Oxford Street in Fort Greene (Compass)
    Townhouse set to smash Fort Greene price record
    Townhouse set to smash Fort Greene price record
    Mayor Eric Adams and Extell's Gary Barnett (Photos by Paul Dilakian)
    Real estate’s titans talk building, selling, and reinventing the city
    Real estate’s titans talk building, selling, and reinventing the city
    Moinian's Joseph Moinian and Bushburg's Jordan Franklin with rendering of Empire State Dairy Company residences (Moinian Group, LinkedIn, Bushburg)
    Bushburg, Moinian snag $105M loan for East New York luxury project
    Bushburg, Moinian snag $105M loan for East New York luxury project
    Ryan Serhant and Bess Freedman (iStock, Illustration by Kevin Cifuentes for The Real Deal)
    Ryan Serhant fires back at Bess Freedman, calls legacy brokerages “scared”
    Ryan Serhant fires back at Bess Freedman, calls legacy brokerages “scared”
    25 North Moore Street (Compass, iStock, Illustration by Kevin Cifuentes for The Real Deal)
    Manhattan luxury market slumps back toward normal
    Manhattan luxury market slumps back toward normal
    281 President Street and 1 John Street, Brooklyn (Streeteasy, Compass, iStock, Illustration by Kevin Cifuentes for The Real Deal)
    Jumbo Dumbo condo claims top Brooklyn contract
    Jumbo Dumbo condo claims top Brooklyn contract
    (iStock)
    Banks, tech among departures sinking Midtown office market
    Banks, tech among departures sinking Midtown office market
    Johnson & Johnson's James Burke with 35 Potato Road/543 Daniel’s Lane (Johnson & Johnson, Realtor)
    Sagaponack waterfront estate sells for almost $48M
    Sagaponack waterfront estate sells for almost $48M
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...