The job situation report released on April 2 by the U.S. Bureau of Labor Statistics (BLS) was a good surprise, and the stock market closed at a record high. Amid the boom, however, as the economy recovers from the COVID-19 crisis, it’s wise to consider what could go wrong.
First, the good news: Total employment rose by 916,000 in March, much higher than the 625,000 net new jobs expected by economists. The jobs recovery is stronger than expected, reflecting better than expected vaccination rates.
With three million Americans vaccinated daily in recent days, March went out with a roaring jobs boom that knocked the unemployment rate down to 6%, from 6.2% in February, 6.3% in January and 6.7% in December.
“These improvements in the labor market reflect the continued resumption of economic activity that had been curtailed due to the coronavirus (COVID-19) pandemic,” according to a BLS press release.
The stock market was closed for Good Friday (April 2). The Standard & Poor’s 500 stock index closed Thursday (April 1) at an all time high of 4,019.87. The index gained +1.18% from March 31 and +1.13% from the March 26 close. The S&P 500 index is up +56.97% from the March 23 bear market low.
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