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- Nonfarm payroll: Nonfarm payrolls rose by 916,000, buoyed by the confluence of COVID-19 vaccinations and fiscal policy.
- Job creation: Leisure and hospitality, construction and education made up a substantial portion of new jobs created in March.
HOUSTON, April 7, 2021 /PRNewswire/ -- According to the latest economic analysis published by the BBVA Research team, March's unemployment figures remain stubbornly high despite strong increases in employment, dropping to 6 percent for the month.
Nonfarm payrolls rose by 916,000 in March, a significant increase compared to recent months and the largest since August 2020. The increase reflects large contributions from leisure and hospitality, government, construction, education and healthcare services. The employment situation was also boosted by upward revisions to January and February reports of 67,000 and 89,000 respectively, according to the analysis co-authored by BBVA Chief Economist Nathaniel Karp, Principal Economist Marcial Nava and economist Adrian Casillas.
The vast majority of sectors saw moderate employment growth and any decreases were comparably negligible. Nearly 70 percent of the increase in total nonfarm payroll was shared between leisure and hospitality, government, construction, and education and healthcare services. The growth in these industries represent the combined impact of several forces: universal vaccine distribution; a flattening in Covid-19 cases, a recovery from extreme winter weather, the relaxation of restrictions in many places, and the American Rescue Plan Act.
The team's analysis concludes that, despite March's vigorous results, the labor market is far from pre-pandemic levels. Significant employment growth is expected to continue, though it may take several quarters to achieve full recovery.
BBVA USA's research team analyzes the U.S. economy and Federal Reserve monetary policy. For its analyses, the economists create models and forecasts for growth, inflation, monetary policy and industries.
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BBVA (NYSE: BBVA) is a customer-centric global financial services group founded in 1857. The Group has a strong leadership position in the Spanish market, is the largest financial institution in Mexico, it has leading franchises in South America and the Sunbelt Region of the United States. It is also the leading shareholder in Turkey's Garanti BBVA. Its purpose is to bring the age of opportunities to everyone, based on our customers' real needs: provide the best solutions, helping them make the best financial decisions, through an easy and convenient experience. The institution rests in solid values: Customer comes first, we think big and we are one team. Its responsible banking model aspires to achieve a more inclusive and sustainable society.
In the U.S., BBVA is a Sunbelt-based financial institution that operates 641 branches, including 330 in Texas, 89 in Alabama, 63 in Arizona, 61 in California, 44 in Florida, 37 in Colorado and 17 in New Mexico. The bank ranks among the top 25 largest U.S. commercial banks based on deposit market share and ranks among the largest banks in Alabama (2nd), Texas (4th) and Arizona (6th). In the U.S., BBVA has been recognized as one of the leading small business lenders by the Small Business Administration (SBA) and ranked 8th nationally in terms of dollar volume of SBA loans originated in fiscal year 2018.
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SOURCE BBVA USA