U.S. | Strong job creation backed by vaccination, reopenings and massive fiscal support

March saw an addition of 916,000 jobs to nonfarm payroll and a drop in the unemployment rate by 0.2pp to 6.0%. This high uptick in the employment situation was brought about by a successful vaccination campaign, the ongoing reopening of the economy and massive fiscal support.

Key points

• Key points:
• Confluence of Covid-19, vaccinations and fiscal policy lifts nonfarm payroll by 916,000
• Nontrivial shares of job creation originated from leisure and hospitality, construction and education
• Despite strong increases in employment, unemployment rates remain stubbornly high especially between demographic groups
• Residual impact from the end of the pandemic and fiscal stimulus will likely carry over to the next months, but the labor market is still far from pre-pandemic levels

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