Hiring in the U.S. has soared in February as the economy started recovering following the vaccine roll-out and the significant plunge in Covid-19 cases. The Labor Department on Friday stated nonfarm payrolls rose by 379,000 compared to 210,000 jobs expectations. Meanwhile the unemployment rate fell to 6.2%.
Over the past two months, the employment growth had shrunk after the government imposed shutdowns in winter. However, economic indicators are on the rise, and the 1st quarter GDP growth is projected to blast above the recent expectations.
Additionally, the Federal Reserve officials have been has been keeping an eye on the drop in the unemployment rates as well as the breadth of jobs recovery and growth in payrolls. Meanwhile, the Central Bank has promised to keep the interest rates as they are until income gains recover, even if this can put a risk of increased inflation. According to a CNBC report, job postings have been on the increase since February.
Nevertheless, Thursday, Fed Chairman Jerome Powell said Central Bank’s economic goals for this year will not be attained. Regardless of the February increase, the U.S. jobs market needs to go through more to fully recover. Since the Covid-19 pandemic outbreak — millions of Americans had lost their jobs and still struggle with unemployment.
10-year Treasury yield jumps above 1.6% after jobs report
The 10-year U.S. Treasury yield soared after the February better-than-expected job report. The yield on the benchmark 10-year Treasury note surged to 1.61 while the yield on the 30-year Treasury bond rose to 2.348%. The increase followed news about the U.S. adding 379,000 jobs in February compared to the 210,000 projection.