Employment figures recorded rapid growth in March driven by stronger economic growth and aggressive vaccination programs. Positive developments prompted the company to increase hiring as reported by the Department of Labor on Friday.
The NFP reading increased by 916,000 for March while the unemployment rate fell to 6%. The reading also far surpassed the forecasts of economists who only expected an increase of 675,000. However, the unemployment rate in March was in line with economists' forecasts.
The NFP report was released in conjunction with different reports interpreted as positive by the market where the U.S. is working to intensify vaccination in an effort to reduce the spread of the Covid-19 pandemic.
In addition, business activity has returned to normal despite occasional economic constraints with the indicator of economic activity at 93.5%.
Data from Homebase shows that the number of employees and working hours increased significantly in the hospitality and entertainment sector. The two sectors are the most affected but able to record an increase in the last two months.
At the same time the manufacturing sector is also growing rapidly with the findings of ISM finding that this sector recorded the highest level since 1983 in March.
The Fed has so far shown no interest in raising interest rates despite the rising labor market. The US dollar index, which measures the greenback, continued to strengthen following the NFP report by 0.01% to the exchange rate of 92.950.
