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Transmission of material in this statement is embargoed until
8:30 a.m. (ET) April 2, 2021.
Statement of
William W. Beach
Commissioner
Bureau of Labor Statistics
Friday, April 2, 2021
Nonfarm payroll employment rose by 916,000 in March, and
the unemployment rate edged down to 6.0 percent. These
improvements in the labor market reflect the continued
resumption of economic activity that had been curtailed due to
the coronavirus (COVID-19) pandemic. Job growth was widespread,
led by gains in leisure and hospitality, public and private
education, and construction.
Substantial job losses related to the pandemic first
occurred in March (-1.7 million) and April (-20.7 million) of
2020. As economic activity resumed, employment increased by 12.6
million from May through November but declined again in December
(-306,000) following a surge in the number of coronavirus cases.
Job growth restarted in January of this year, and nonfarm
payroll employment has increased by 1.6 million over the past 3
months. However, payroll employment is down by 8.4 million, or
5.5 percent, from the pre-pandemic employment peak in February
2020.
Employment in leisure and hospitality rose by 280,000 in
March and by 384,000 in the prior month, as pandemic-related
restrictions continued to ease in many parts of the country.
Within the industry, job growth in food services and drinking
places (+176,000) accounted for almost two-thirds of the March
increase. Employment also rose in arts, entertainment, and
recreation (+64,000) and accommodation (+40,000). Employment in
leisure and hospitality is down by 3.1 million, or 18.5 percent,
since February 2020.
In March, employment increased in both public and private
education, reflecting the continued resumption of in-person
learning and other school-related activities in many parts of
the country. Local government education added 76,000 jobs, state
government education added 50,000 jobs, and private education
added 64,000 jobs. Since February 2020, employment is down in
local government education (-594,000), state government
education (-270,000), and private education (-310,000).
Construction employment increased by 110,000 in March,
following a loss in the previous month (-56,000) that was likely
weather-related. In March, job gains occurred in specialty trade
contractors (+65,000), heavy and civil engineering construction
(+27,000), and construction of buildings (+18,000). Employment
in construction is down by 182,000 since February 2020.
Professional and business services added 66,000 jobs in
March. Employment in administrative and support services
continued to trend up (+37,000), though employment in its
temporary help services component, which had risen in recent
months, was essentially unchanged in March. Over the month,
employment also continued to trend up in management and
technical consulting services (+8,000) and computer systems
design and related services (+6,000). Since February 2020,
employment in professional and business services is down by
685,000.
Employment in manufacturing rose by 53,000 over the month,
with job gains in both the durable goods (+30,000) and
nondurable goods (+23,000) components. Manufacturing employment
is down by 515,000 since February 2020.
Transportation and warehousing added 48,000 jobs in March,
with employment increases in couriers and messengers (+17,000),
transit and ground passenger transportation (+13,000), support
activities for transportation (+6,000), and air transportation
(+6,000). Since February 2020, employment in couriers and
messengers is up by 206,000, while employment is down by 112,000
in transit and ground passenger transportation and by 104,000 in
air transportation. Overall, employment in transportation and
warehousing is 66,000 lower than in February 2020.
Employment in the other services industry increased by
42,000 in March but is down by 396,000 since February 2020. Over
the month, job gains occurred in personal and laundry services
(+19,000) and in repair and maintenance (+18,000).
Social assistance added 25,000 jobs in March, with most of
the gain in individual and family services (+20,000). Employment
in social assistance is 306,000 lower than the peak in February
2020.
Employment in wholesale trade rose by 24,000 in March, with
gains in both the durable and nondurable goods components
(+14,000 and +10,000, respectively). Wholesale trade employment
is 234,000 below the February 2020 level.
Retail trade employment increased by 23,000 in March. Job
gains in clothing and accessories stores (+16,000), motor
vehicle and parts dealers (+13,000), and furniture and home
furnishings stores (+6,000) were partially offset by job losses
in building material and garden supply stores (-9,000) and
general merchandise stores (-7,000). Although retail employment
has trended up since April, it is 381,000 lower than in February
2020.
In March, mining employment rose by 21,000, mostly in
support activities for mining (+19,000). Mining employment is
down by 130,000 since a peak in January 2019.
Financial activities added 16,000 jobs in March, with gains
in insurance carriers and related activities (+11,000) and real
estate (+10,000) more than offsetting a loss in credit
intermediation (-7,000). Employment in financial activities is
87,000 below its level in February 2020.
Employment changed little in health care in March but is
down by 557,000 since February 2020.
In March, employment was essentially unchanged in
information. Employment in the industry is 241,000 lower than in
February 2020.
Average weekly hours for all private-sector workers
increased by 0.3 hour in March to 34.9 hours, following a
decline of 0.4 hour in the previous month. In March, the average
workweek for manufacturing increased by 0.2 hour to 40.5 hours.
Average hourly earnings of all employees on private nonfarm
payrolls decreased by 4 cents to $29.96 in March. One should
continue to use caution when interpreting changes in average
hourly earnings during the pandemic, as large shifts in the
industry composition of employment can complicate monthly
comparisons.
Turning to the labor market indicators from the household
survey, the unemployment rate edged down to 6.0 percent in
March. The rate is down considerably from its recent high in
April 2020 but is 2.5 percentage points higher than its pre-
pandemic level in February 2020. The number of unemployed
people, at 9.7 million, continued to trend down in March but is
4.0 million higher than in February 2020.
Among the major worker groups, the unemployment rate for
Asians increased to 6.0 percent in March, following a decrease
in the previous month. The jobless rate for Hispanics edged down
to 7.9 percent over the month, while the rates changed little
for adult men (5.8 percent), adult women (5.7 percent),
teenagers (13.0 percent), Whites (5.4 percent), and Blacks (9.6
percent).
Among the unemployed, the number of people on temporary
layoff declined by 203,000 in March to 2.0 million. This measure
is down considerably from the recent high of 18.0 million in
April 2020 but is 1.3 million higher than in February 2020. The
number of permanent job losers, at 3.4 million, was little
changed in March but is 2.1 million higher than February 2020.
By duration of unemployment, the number of people searching
for work for less than 5 weeks was essentially unchanged in
March at 2.2 million. The number of people unemployed for 5 to
14 weeks declined by 313,000 to 1.9 million. The number of
people unemployed for 27 weeks or more (often referred to as the
long-term unemployed), at 4.2 million, was little changed over
the month but is up by 3.1 million since February 2020. In
March, the long-term unemployed accounted for 43.4 percent of
the unemployed.
The labor force participation rate changed little at 61.5
percent in March. This measure is 1.8 percentage points lower
than in February 2020. The employment-population ratio, at 57.8
percent, was up by 0.2 percentage point over the month but is
3.3 percentage points lower than in February 2020.
In March, 5.8 million people were working part time for
economic reasons, little changed from the previous month. The
number of people affected by this type of underemployment is
down from a peak of 10.9 million in April 2020 but is 1.4
million higher than in February 2020.
At 6.9 million, the number of people not in the labor force
who currently want a job was about unchanged in March. Among
those who were not in the labor force but wanted a job, the
number of people marginally attached to the labor force was
essentially unchanged at 1.9 million. (People who are marginally
attached to the labor force had not actively looked for work in
the 4 weeks prior to the survey but had looked for a job within
the last 12 months.) The number of discouraged workers, a subset
of the marginally attached who believed that no jobs were
available for them, was essentially unchanged over the month at
523,000.
As in previous months, some workers affected by the
pandemic who should have been classified as unemployed on
temporary layoff in March were instead misclassified as employed
but not at work. Since March 2020, BLS has published an estimate
of what the unemployment rate would have been had misclassified
workers been included among the unemployed. Repeating this same
approach, the seasonally adjusted March unemployment rate would
have been 0.4 percentage point higher than reported. Additional
information about the misclassification, as well as information
about response rates for both the household and establishment
surveys, is available on the BLS website at
www.bls.gov/covid19/employment-situation-covid19-faq-march-2021.htm.
Looking at supplemental pandemic-related measures from the
household survey (these supplemental data are not seasonally
adjusted), the share of employed people who teleworked in March
because of the coronavirus pandemic declined to 21.0 percent.
These data refer only to employed people who teleworked or worked
at home for pay at some point in the last 4 weeks specifically
because of the pandemic; they do not include all instances of
telework.
In March, the number of people who reported that they had
been unable to work because their employer closed or lost
business due to the pandemic--that is, they did not work at all
or worked fewer hours at some point in the last 4 weeks due to
the pandemic--decreased to 11.4 million. Among those who
reported in March that they were unable to work because of
pandemic-related closures or lost business, 10.2 percent
received at least some pay from their employer for the hours not
worked, little changed from the prior month.
Among those not in the labor force in March, 3.7 million
people were prevented from looking for work due to the pandemic,
down from 4.2 million in the prior month. (To be counted as
unemployed, by definition, individuals must either be actively
searching for work or on temporary layoff.)
In summary, total nonfarm payroll employment increased by
916,000 in March, and the unemployment rate edged down to 6.0
percent.