Employers Added a Whopping 379,000 Jobs in February

Employers added 379,000 jobs in February, as the labor market stashed a strong rebound from its winter swoon, the Bureau of Labor Statistics reported on Friday.

The figure was well above an expected gain of around 200,000 jobs and well above January's disappointing increase of 49,000. The unemployment rate, meanwhile, ticked down slightly to 6.2%.

Most of the gains came in the leisure and hospitality sectors, with smaller gains in temporary help services, health care and social assistance, retail trade, and manufacturing. State and local government education employment saw declines, as did construction, and mining.

The jobs figure is the last remaining major piece of the economic puzzle to fall into place, as other readings of the economy like gross domestic product, manufacturing activity, consumer spending and personal savings have all flashed green in recent months as the country recovers from the damage caused by the coronavirus.

"While it is a hopeful sign that these jobs numbers topped expectations, we still have a ways to go before we start to see real, upward economic momentum for Main Street here," said Steve Rick, chief economist at CUNA Mutual Group. "Progression on the vaccine front is a real source of optimism, but ultimately, I think it could take over two years to return to pre-COVID labor market conditions."

With vaccination against the virus now at about 2 million doses a day and the rate of infections having fallen significantly, analysts expect the economy to be largely back to normal by the summer. Employment, however, has lagged and economists believe the national rate understates the true nature of the labor market.

"We will only have recovered less than 60% of all the jobs lost and it will likely be next year at the earliest that we get them all back, said Dan North, senior economist at Euler Hermes North America.

Businesses are being cautious in an environment where coronavirus cases have spiked and consumers remain cautious. Many industries, from tourism to aviation, are operating well below capacity.

"More people means more risk," said Drew Matus, chief market strategist at MetLife Investment Management. "Rather than hiring, firms are going to try to work with existing employees longer."

But with large states such as Texas easing restrictions and others allowing greater capacity at restaurants and other establishments, that could change quickly.