Jobs report brings good news for real estate

Gains in leisure and hospitality; remote work declines

National /
Apr.April 01, 2022 01:00 PM

(iStock/Illustration by Steven Dilakian for The Real Deal)

Restaurants, bars and hotels hired 112,000 workers in March, a show of modest strength in the sector as national employment climbed to within 1 percent of pre-pandemic levels.

The economy added 431,000 jobs last month with notable gains in leisure and hospitality, construction, building services and rental and leasing, according to figures released by the Department of Labor on Friday.

“March was another strong month for the job market,” Mike Fratantoni, chief economist for the Mortgage Bankers Association, said in a statement. “Job gains were well above what can be sustained for the longer term.”

Monthly job growth averaged 562,000 in the first quarter of the year following upward revisions for January and February, matching monthly gains made during 2021.

Pandemic-related job losses in leisure and hospitality have left a hole in the U.S. economy. The sector accounts for 1.5 million of the 1.6 million positions lost since February 2020. The sector’s job gains in March were about one-quarter less than the gains reported in January and February.

Office landlords have reason to cheer the new data, as the number of people who reported working from home fell to 10 percent from 13 percent in February. “As the federal government and others return to work in April, this number should drop sharply,” Fratantoni predicted. “This is good news for commercial real estate lenders and investors.”

Retailers hired 49,000 people in March and now employ 278,000 more people than in February 2020. The construction industry returned to its pre-pandemic level after hiring 19,000 workers, and some 22,000 were hired to provide services to buildings.

Real estate rental and leasing added 14,000 jobs in March, while hiring in warehousing, which was already above pre-pandemic levels, was flat.





    Related Articles

    arrow_forward_ios
    A photo illustration of Fifth Avenue, Grand Central and SoHo in New York City (iStock)
    Manhattan retail rents tick up as recovery slogs along
    Manhattan retail rents tick up as recovery slogs along
    DoorDash's Tony Xu with 51 Eads Street and 6133 Jericho Turnpike
    Startup plans LI convenience stores that shoppers can’t enter
    Startup plans LI convenience stores that shoppers can’t enter
    Strong month for US economy, but hospitality hiring slows
    Jobs report shows more workers returning to office
    Jobs report shows more workers returning to office
    Jersey Mike's CEO Peter Cancro in front of 1500 Smithtown Avenue in Bohemia, Long Island (Jersey Mike's, Google Maps, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
    Sandwich chain Jersey Mike’s expanding in NY
    Sandwich chain Jersey Mike’s expanding in NY
    Don Ghermezian, CEO, Triple Five Group, in front of the American Dream Mall in East Rutherford (Triple Five Group, American Dream Mall, iStock)
    American Dream lost $60M in 2021
    American Dream lost $60M in 2021
    At Home's Lee Bird with 2100 Bartow Avenue (Google Maps, iStock) Bronx, New York
    Home decor retailer leases 135K sf for first Bronx store
    Home decor retailer leases 135K sf for first Bronx store
    A photo illustration of Market by Macy's located at 321 State Street in Southlake, Texas (Google Maps, iStock)
    Macy’s embracing smaller stores in department store shuffle
    Macy’s embracing smaller stores in department store shuffle
    A photo illustration of retail buildings in Brooklyn (iStock)
    Brooklyn retail rents on the rise
    Brooklyn retail rents on the rise
    arrow_forward_ios

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

    Loading...